Jasper Furnishings has $300 million in sales. The company expects that its sales will increase 12 percent this year. Jaspers CFO uses a simple linear regression to forecast the companv s inventory level for a given level of projected sales. On the basis of recent history, the estimated relationship between inventories and sales (in millions of dollars) is Inventories = $25 + 0.125(Sales).

Given the estimated sales forecast and the estimated relationship between inventories and sales, what is your forecast of the company's year-end inventory turnover ratio?

AppendixLO1