Financial Statement Forecasting: The Home Depot is aleading specialty retailer o

Financial Statement Forecasting: The Home Depot is aleading specialty retailer of hardware and home improvementproducts and is the second-largest retail store chain in the UnitedStates. It operates large warehouse-style stores. Despite decliningsales and difficult economic conditions in 2007 and 2008 The HomeDepot continued to invest in new stores. The following tableprovides summary data for The Home Depot (see attached).Requireda. Use the preceding data for The Home Depot to computeaverage revenues per store capital spending per new store andending inventory per store in 2008.b. Assume that The Home Depot will add 100 new stores by theend of Year +1.Use the data from 2008 to project Year +1 sales revenuescapital spending and ending inventory. Assume that each new storewill be open for business for an average of one-half year in Year_1. For simplicity assume that inYear +1 Home Depots sales revenues will grow but onlybecause it will open new stores.