Data Table

Score: 0.5 of 1 pt 5 of 6 (4 complete) HW Score: 47 22% 2.83 of 6 pts Problem 14-12 (similar to) Question Help Forecasting inventories) Fiday Instruments produces a complete line of medical instruments used by plastic Surgeons and has exponenced raped growth over the past 5 years. In an effort to make more accurate predictions of its financing requirements, Findlay is currently attempting to conduct a francial planning model based on the percent of sales forecasting method. However, the firm's chief financial analyst is concerned that the projections for inventions will be seriously in error. She recognizes that the firm has begun to accrue substantial economies of scale in its inventory investment and has documented this fact in the flowing data and calculations: a. Plot Findlay's sales and inventories for the past 5 years. What is the relationship between these two variables? b. Estimate firm inventories for 2019, when firm sales are projected to reach $20 million. Use the average percentage of sales for the past 5 years, the most recent percentage of sales, and your evaluation of the true relationship between the sales and inventories from part a to make three predictions b. Use the average percentage of sales for the past 5 years to make the prediction. What are the firm's projected inventories for 2019 when the sales are projected to reach $20 million? $ 1277600 (Round to the nearest dollar.) Use the most recent percentage of sales to make the prediction. What are the firm's projected inventories for 2019 when the sales are projected to reach 520 million? $ (Round to the nearest dollar.) YEAR 2014 2015 SALES ($000) $15,000 18,000 17,500 20,000 25,000 INVENTORY ($000) $1,150 1,180 1,175 2016 2017 2018 % OF SALES 7.67% 6.56% 6.71% 6.00% 5.00% Average 6.39% 1,200 1,250 Print Done