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Use the following hypothetical data for Walgreens in 2021 and 2022 to project revenues, cost of goods sold, and inventory for Year +1. Assume that
Use the following hypothetical data for Walgreens in 2021 and 2022 to project revenues, cost of goods sold, and inventory for Year +1. Assume that Year +1 revenue growth rate, gross profit margin growth rate, and inventory turnover will be identical to 2022. Project the average inventory balance in Year +1 and use it to compute the implied ending inventory balance.
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