Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Edwards Industries has $ 3 8 0 million in sales. The company expects that its sales will increase 1 0 % 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 $
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
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started