1. Please consider theexcerpts from WalgreensBoots Alliance (i.e., Walgreens) annual report (PDF) for fiscal year 2020 and answer the following 10 questions. Note that fiscal year 2020 ends on August 31, 2020.

1)Which cost flow assumption(s) does Walgreens use to value its inventory?

2. Suppose Walgreens had used FIFO as a cost flow assumption for all of their inventories. What would the book value of Inventories be on August 31, 2020?

3. What is the amount of inventory purchases in fiscal year 2020?

4. Estimate cash collected from customers in fiscal year 2020 (assume that sales are net of bad expense)

5. estimate cash paid to suppliers in fiscal year 2020

6. Assume the company measures bad debt expense as 1% of beginning gross receivables. Calculate the amount of bad debts written off in fiscal year 202

7. What is the number of outstanding shares at the end of fiscal year 2020

8. How many shares did the company repurchase during fiscal year 2020? what was the average price per repurchased share?

9. refer to the 4.65% notes due 2046. Calculate the interest expense on this note for fiscal year 2025?

10 refer to the same not as in previous question (the 4.65% notes due 2046) calculate the total amount of cash payment at maturity (use semi annual calculations)?

WALGREENS BOOTS ALLIANCE. INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS At August 31.2020 and 2019 (in millions. except shares and per share amounts) 2020 2019 Assets Current assets: Cash and cash equivalents S 516 5 1.023 Accounts receivable. nct 7.132 7.226 Inventories 9.45 l 9.33 3 Other current assets 974 1.118 Total current assets 18.073 18.700 Non-current assets: Property. plant and equipment. net 13.342 13.478 Operating lease right-of-use asset 21.724 Goodwill 15.268 16.560 Intangible assets. net 10.753 10.876 Equity method investments (see note 5) 7.338 6.851 Other non-current assets 677 1.133 Total mn-cmrent assets 69.101 48,899 Total assets W . 67 598 Liabilities and equity Current liabilities: Short-term debt 5 3.538 3 5.738 Trade accounts payable (see note 18) 14.458 14,341 Operating lease obligation 2.426 Accrued expenses and other liabilities 6.539 5.474 Income taxes 1 10 216 Total current liabilities 27.070 25.769 Noncurrent liabilities: Long-term debt 12.203 1 1.098 Operating [arse obligation 21.973 Deferred income taxes 1.498 1.785 Other non-current liabilities 3 94 4,795 Total non-eturcnt liabilities 38.968 17.678 Commitments and contingencies (see note 10) Equity: Preferred stock $.01 par value; authorized 32 million shares. none issued Common stock $.01 par value; authorized 3.2 billion shares; issued 1.172.513.618atAugust3l.2020and2019 12 12 Paid-in capital 10.761 10,639 Retainedearniny 34.210 35.815 Accumulated other comprehensive loss (3.771) (3.897] Treasury stock. at cost; 306310.099 shares at August 31. 2020 and 277.126.116 sharesat August 31. 2019 120.575) [19,052] Total Walgreens Boots Alliance. Inc. shareholders' equity 20.637 23.512 Noncontrolling interests 498 641 Total equity 21.136 24.152 Total liabilities and equity 3 87174 S 67 98 WALGREENS BOOTS ALLIANCE. INC. AND SUBSIDIARJES CONSOLIDATED STATEMENTS OF EARNINGS For the years ended August 31. 2020, 2019 and 2018 (in millions. except per share amounts) 2020 2019 2018 Sales S 139.53? 5 136.866 3 131.537 Cost of sales 11 1,520 106,790 100,245 Gross prot 28.01 1' 30.076 30.792 Selling. general and administrative expenses 27.045 25.242 24.694 Equity earnings in AmeriaoureeBergen 341 I64 191 Operating income 1.312 4.998 6.289 Other income 70 233 302 Eamings before interest and income tart provision 1.382 5.231 6.591 Interest expense. net 639 704 616 Earnings before income tax provision 743 4.52? 5.975 Income tax provision 360 588 998 Post tax earnings from other equity method investments 4| 23 54 Net earnings 424 3.962 5.031 Net (loss) earnings attributable to noncontrolling interests 132! [20! 7 Net earnings attributable to Walgreens Boots Alliance. Inc. S 456 S 33982 S S 024 Net earnings per common share: Basic 0.52 S 4.32 S Diluted 0.52 S 4.31 S Weighted average common shares outstanding: Basic Diluted WALGREENS BOOTS ALLIANCE, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EQUITY For the years ended August 31, 2020, 2019 and 2018 (in millions, except shares) Equity attributable to Walgreens Boots Alliance, Inc. Employee Accumulated Common Treasury stock other Common stock stock stock Paid-in loan comprehensive Retained Noncontrolling Total shares amount amount capital receivable income (loss) carings interests equity August 31, 2017 1023,849.070 12 S (9.971) $ 10.339 S (3.051) 30.137 S 808 $ 28 274 Net earnings 5.024 7 5.031 Other comprehensive income (loss). net of tax 49 50 Dividends declared and distributions (1,610) (138) (1.748) Treasury stock purchases (76,069,557) (5,228) (5,228) Employee stock purchase and option plans 4,353,905 152 22 174 Stock-based compensation 130 130 Noncontrolling interests acquired and arising on business combinations August 31, 2018 952.133.418 S 12 S (15.047) $ 10.493 $ (3.002) $ 33,551 S 682 $ 26.689 Net carnings 3,982 (20) 3.962 Other comprehensive income (loss). net of tax (896) (13) (909) Dividends declared and distributions (1,629) (3) (1,632) Treasury stock purchases (61,723,456) (4,160) (4,160) Employee stock purchase and option plans 4,977,540 150 24 174 Stock-based compensation 119 119 Adoption of new accounting standards (88) (88) Noncontrolling interests contribution and other (1) (5) (3) August 31, 2019 895,387,502 $ 12 S (19.057) $ 10.639 $ S (3.897) $ 35,815 S 641 $ 24,152 Net earnings 456 (32) 424 Other comprehensive income (loss), net of tax 126 22 148 Dividends declared and distributions (1.618) (133) (1.751) Treasury stock purchases (32,055,576) (1,589) (1,589) Employee stock purchase and option plans 2,271,593 72 (17) 55 Stock-based compensation 137 137 Adoption of new accounting standards (442) (442) Noncontrolling interests contribution and other August 31, 2020 865,603,519 S 12 S (20.575) $ 10,761 $ $ (3.771) $ 34,210 S 498 $ 21,136Accounts receivable Accounts receivable are stated net of allowances for doubtful accounts. Accounts receivable balances primarily consist of trade receivables due from customers, including amounts due from third-party payers (e.g., pharmacy benefit managers, insurance companies and governmental agencies), clients and members. Trade receivables were $6.0 billion and $6.0 billion at August 31, 2020 and 2019, respectively. Other accounts receivable balances, which consist primarily of receivables from vendors and manufacmrers, including receivables from AmerisourceBergen (see note 18, related parties). were $1.2 billion and $1.2 billion at August 31, 2020 and 2019, respectively. Charges to allowance for doubtful accounts are based on estimates of recoverability using both historical write-offs and specically identied receivables. The allowance for doubtful accounts for trade receivables at August 31. 2020 and 2019 were $61 million and $95 million, reapectively. Inventory The Company values inventories on a lower of cost and net realizable value or market basis. Inventories include product costs, inbound freight, direct labor, warehousing costs for retail pharmacy operations and distribution of products and vendor allowances not classied as a reduction of advertising expense. The Company's Retail Pharmacy USA segment inventory is accounted for using the last-in- rst-out ("LIFO") method. The total carrying value of the segment inventory accounted for under the LIFO method was $6.4 billion and $6.6 billion at August 31, 2020 and 2019, respectively. At August 31, 2020 and 2019, Retail Pharmacy USA segment inventory would have been greater by $3.3 billion and $3.2 billion, respectively, if they had been valued on a lower of rst-in-rst-out (\"F 1F 0") cost and net realizable value. The Company's Retail Pharmacy lntemational and Pharmaceutical Wholesale scgments' inventory is primarily accounted for using the FIFO method. The total carrying value of the inventory for Retail Pharmacy International and Pharmaceutical Wholesale segments was $3.0 billion and $2.7 billion at August 31, 2020 and 2019, respectively. Debt Debt carrying values are presented net of unamonized discount and debt issuance costs. where applicable. and foreign currency denominated debt is translated using the spot rates as of the balance sheet date. Debt consists of the following (all amounts are presented in millions of US dollars and debt issuances are denominated in US. dollars. unless otherwise noted): August 31. August 31, 2020 2019 Short-tenn debt Commercial paper 1,517 5 2,400 Credit facilities I .071 l ,624 88 billion note issuance 2.100% unsecured notes due 2019 1,250 [700 million note issuance 2.875% unsecured Pound sterling notes due 2020 Other Total short-term debt Long-term debt 51.5 billion note issuance 3.200% unsecured notes due 2030 4.100% unsecured notes due 2050 $6 billion note issuance 3.450%- unsecured notes due 2026 4.650% unsecured notes due 2046 58 billion note issuance 3.300% unsecured notes due 2021 3.800% unsecured notes due 2024 4.500% unsecured notes due 2034 4.800% unsecured notes due 2044 :t' 700 million note issuance, 2.875% unsecured Pound sterling notes due 2020 3.600% unsecured Pound sterling notes due 2025 750 million note issuance 2.125% unsecured Euro notes due 2026 34 billion note issuance 3.100% unsecured notes due 2022 4.400% unsecured notes due 2042 Other Total long-term debt. less current portiOn