5 PROJECTING REVENUES, COST OF GOODS SOLD, AND INVENTORY. Walgreens is a leading chain of drugstores in the United States.

10.5 PROJECTING REVENUES, COST OF GOODS SOLD, AND INVENTORY. 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 Walgreens 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.