Question
Suppose a company's total store count at the end of years 1, 2, and 3 were 7040, 7352, and 7404 respectively. Also suppose that inventory
Suppose a company's total store count at the end of years 1, 2, and 3 were 7040, 7352, and 7404 respectively. Also suppose that inventory had a balance of $26,260 at the end of year 1, $26,672 at the end of year 2, and $27,844 at the end of year 3. If the company adds 72 new stores in year 4, calculate the forecasted inventory balance at the end of year 4. Assume the same inventory balance per store in all future years as that in year 3 calculated using the year-end balances. Note that year 3 is the latest year with reported results, while years 4 onwards are all forecasted years.
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