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10.9 Store-Driven Forecasts. EFSAP The Home Depot is a leading specialty retailer of hardware and home improvement products and is the second-largest retail store chain
10.9 Store-Driven Forecasts. EFSAP The Home Depot is a leading specialty retailer of hardware and home improvement products and is the second-largest retail store chain in the United States. It operates large warehouse-style stores. Assume in 2021 and 2022, The Home Depot invested in five new stores. The following table provides summary hypothetical data for The Home Depot. LO 10-2 + 2022 2021 2,269 The Home Depot (amounts in millions except number of stores) Number of stores Sales revenues Inventory Capital Expenditures, net $83,176 $11,079 $ 1,442 2,274 $88,519 $11,809 $ 1,503 Required a. Use the preceding data for The Home Depot to compute average revenues per store, capital spending per new store, and ending inventory per store in 2022. b. Assume that The Home Depot will add 10 new stores by the end of Year +1. Use the data from 2022 to project Year +1 sales revenues, capital spending, and ending inventory. 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, Home Depots sales revenues will grow but only because it will open new stores
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