Store driven forecast the home depot is a leading specialty

Reference no: EM13363782

Store driven forecast. The home depot is a leading specialty retailer of hardware and home improvement products and is the second largest retail store chain in United States. It operates large warehouse style stores. Despite declining sales and difficult economic conditions in 2007 and 2008 the home depot continued to invest in new store. The following table provides summary data for the home depot.

Home Depot
(amounts in millions except number of stores

........................................2007................2008
Number of Store...... 2234------------- 2274
Sales revenue.................$77349.00----- $74288
Inventory.........................$11731---------- $10673
Capital expenditure net... $3558------------$1847

a. Use the preceding data for The Home Depot to evaluate average revenues per store, capital spending per new store, and ending inventory per store in 2008.

b. Assume that The Home Depot will add 100 new stores by the end of the Year + 1. Use the data form 2008 to project year + 1 sales revenue, 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 the in Year + 1, Home Depot's sales revenues will grow, but only because it will open new stores.

Reference no: EM13363782

Questions Cloud

Pick an mnc that currently does not do business in india : pick an mnc that currently does not do business in india. then consider what steps this company should explore to

Xiao li wishes to accumulate 50000 by the end of 10 years : xiao li wishes to accumulate 50000 by the end of 10 years by making equal annual end-of-year deposits over the next 10

Two years ago the krusty krab restaurant purchased a grill : two years ago the krusty krab restaurant purchased a grill for 50000. the owner eugene krabs has learned that a new

1 why did the proportion of equities in long-term funds : 1. why did the proportion of equities in long-term funds increase from 38.3 percentnbsp in 1990 to over 70 percent by

Store driven forecast the home depot is a leading specialty : store driven forecast. the home depot is a leading specialty retailer of hardware and home improvement products and is

Projecting gross profit the effects of volume versus price : projecting gross profit the effects of volume versus price. suppose you are analyzing a firm that is successfully

Consider the statement strategy analysis seems to be an : consider the statement strategy analysis seems to be an unnecessary detour in doing financial statement analysis. why

The president of gentiva health services is considering : the president of gentiva health services is considering increasing her number of medicare patients served next year.

Ted jones the surgery unit director is about to choose his : ted jones the surgery unit director is about to choose his strategy for creating a capital expenditure funding proposal

User Account

All Pages