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10.5Projecting Revenues, Cost of Goods Sold, and Inventory. In thisexercise, students work through the computations to project revenue, cost of goods sold, and ending inventory for Walgreens. The data and computations follow: Walgreens’ (data in millions)   Year 2014 Year 2015 Growth Rates Sales Revenue............................ $76,392$103,444 35.4% Cost of Goods Sold ................... $54,823$76,520 39.6% Ending Inventory ...................... $ 6,076   $8,678Year 2015 Inventory Turnover ...................  $76,520/[($6,076 + $8,678)/2] = 10.37 Projected Average Inventory ................. $106,804/10.37 = $10,299Projected Ending Inventory ................... ($10,299 × 2) – $8,678 = $11,920 10.15Identifying Financial Statement Relations. a.Retained Earnings, Beginning of Year +1 ......................................                   $21,700Net Income for Year +1 ...........................................................          1,153Retained Earnings, End of Year +1 ................................................             (22,043)
Dividend Declared and Paid for Year +1........................................ $810b.Accumulated Depreciation, End of Year +1...................................

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