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en Forecasts. The Home Depot is a leading specialty retailer of 10.9 Store-Driven Fore united States. It operatorovemen 10.92 and home improvement products and is

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en Forecasts. The Home Depot is a leading specialty retailer of 10.9 Store-Driven Fore united States. It operatorovemen 10.92 and home improvement products and is the ardware tes It operates large warehouse-style stores. Despite declining sales and difficult nd home improvement products and is the second-largest retail store chain in the re and home im LO c conditions in 20X1 and 20x2, The Home Depot continued to invest in new stores. The condi economic ollowing ta table provides summary hypothetical data for The Home Depot. The Home Depot (amounts in millions except number of stores) 20X1 20X2 Number of stores Sales revenues Inventory Capital Expenditures, net 2,234 $77,349 $11,731 3,558 2,274 $71,288 $10,673 1,847 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 20X2. b. Assume that The Home Depot will add 100 new stores by the end of Year +1. Use the data from 20X2 to project Year +1 sales revenues, capital spending, and ending inven- tory. 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 Depot's sales revenues will grow, but only because it will open new stores

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