Walgreens projecting revenues, cost of goods sold and inventory.

PROJECTING REVENUES, COST OF GOODS SOLD, AND INVEN- TORY. Walgreens is a leading chain of drugstores in the United States. Use the following data for Walgreens in Years 7 and 8 to project revenues, cost of goods sold, and inventory for Year +1. Assume that Walgreen’s Year +1 revenue growth rate, gross profit margin, and inventory turnover will be identical to Year 8. Project the average inventory balance in Year

+1 and use it to compute the implied ending inventory balance.




Walgreens (data in millions)

Year 7

Year 8

Sales Revenues



Cost of Goods Sold



Ending Inventory

$ 6,791

$ 7,249