Question
Accounts Receivable = $99,220 + 0.225(Sales) Inventories = $9,340 + 0.223(Sales) U.S. Robotics Inc. currently has sales of $1,110,000, but it expects sales to grow
Accounts Receivable = $99,220 + 0.225(Sales) Inventories = $9,340 + 0.223(Sales) U.S. Robotics Inc. currently has sales of $1,110,000, but it expects sales to grow by 20% over the next year. Use the regression models to calculate U.S. Robotics Inc.s forecasted values for accounts receivable and inventories needed to support next years sales. Forecasted Values for Next Year Accounts receivable Inventories Based on the next years accounts receivable and inventory levels predicted by U.S. Robotics Inc.s regression equations, the firms DSO for next year is expected to be . Use 365 days as the length of a year in all calculations.
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