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Edwards Industries has $ 3 6 0 million in sales. The company expects that its sales will increase 1 8 % this year. Edwards' CFO
Edwards Industries has $ million in sales. The company expects that its sales will increase this year. Edwards' CFO uses a simple linear regression to forecast the company's receivables level for a given level of projected sales. On the basis of recent history, the estimated relationship between receivables and sales in millions of dollars is as follows:
Receivables $Sales
Given the estimated sales forecast and the estimated relationship between receivables and sales, what are your forecasts of the company's yearend balance for receivables? Enter your answer in millions. For example, an answer of $ should be entered as Do not round intermediate calculations. Round your answer to two decimal places.
$
million
What are your forecasts of the company's yearend days sales outstanding DSO ratio? Assume days in year for your calculations. Do not round intermediate calculations. Round your answer to two decimal places.
days
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