Charlie's Cyles Inc. has $110 million in sales. The company expects that its sales will increase 5% this year. Charlies CFO uses a simple linear regression to forecast the companys inventory level for a given level of projected sales. On the basis of recent history, the estimated relationship between inventories and sales is as follows: Inventories = $9 + 0.0875(sales)

Given the estimated sales forecast and the estimated relationship between inventories and sales, what are your forecasts of the companys year end inventory level and its inventory turnover ratio, assuming that its cost of goods sold is 65% of sales?