1. Quantitative Problem:Jasper Jewelry has $130 million in sales. The company expects that its sales will increase 4% this year. Jasper's CFO uses a simple linear regression to forecast the company'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 as follows:

Inventories = $10 + 0.09(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 level? Round your answer to two decimal places. Do not round intermediate calculations. $ -------million

2. Quantitative Problem 1:Beasley Industries' sales are expected to increase from $5 million in 2013 to $6 million in 2014, or by 20%. Its assets totaled $3 million at the end of 2013. Beasley is at full capacity, so its assets must grow in proportion to projected sales. At the end of 2013, current liabilities are $780,000, consisting of $150,000 of accounts payable, $400,000 of notes payable, and $230,000 of accrued liabilities. Its profit margin is forecasted to be 4%, and its dividend payout ratio is 50%. Using the AFN equation, forecast the additional funds Beasley will need for the coming year. Round your answer to the nearest dollar. Do not round intermediate calculations. $--------------

3. Quantitative Problem:At the end of last year, Edwin Inc. reported the following income statement (in millions of dollars):

Sales	$4,100
Operating costs excluding depreciation	3,008
EBITDA	$1,092
Depreciation	300
EBIT	$792
Interest	140
EBT	$652
Taxes (40%)	261
Net income	$391

Looking ahead to the following year, the company's CFO has assembled this information:

• Year-end sales are expected to be 6% higher than $4.1 billion in sales generated last year.
• Year-end operating costs, including depreciation, are expected to increase at the same rates as sales.
• Interest costs are expected to remain unchanged.
• The tax rate is expected to remain at 40%.

On the basis of this information, what will be the forecast for Edwin's year-end net income? Round your answer to the nearest whole million. Do not round intermediate calculations. Enter all values as positive numbers.

	(in millions of dollars)
Sales	$
Operating costs including depreciation
EBITDA	$
Depreciation
EBIT	$
Interest
EBT	$
Taxes
Net income	$