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1. (15 points) Inventory Shack Depot is a leading specialty retailer of hardware and home improvement. It operates large warehouse-style stores. The following table provides
1. (15 points) Inventory Shack Depot is a leading specialty retailer of hardware and home improvement. It operates large warehouse-style stores. The following table provides summary hypothetical data for Shack Depot. Shack Depot (amounts in millions except number of stores) 2022 3,098 $2,064 2023 3,148 $2,291 Number of stores Sales revenues $95,023 $96,475 $14,133 $14,837 Capital expenditures, net REQUIRED: a. Use the preceding data for Shack Depot to compute (in millions of dollars): 1. Average revenues per store, 2. Capital spending per new store, and 3. Ending inventory per store in 2023. b. Assume that Shack Depot will add 34 new stores by the end of Year +1. Assume that each new store will be open for business for an average of one-half year in Year +1. For simplicity, assume that in Year +1, Shack Depots sales revenues will grow, but only because it will open new stores. Use the data from 2023 to project (in millions of dollars) the Year +1: 1. Sales revenues, 2. Capital spending, and 3. Ending inventory
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