Fairchild Garden Supply expects $700 million of sales this year, and it forecasts a 15% increase for next year. The CFO uses this equation to forecast inventory requirements at different levels of sales: Inventories = $30.2 + 0.25(Sales). All dollars are in millions. What is the projected inventory for the coming year?

Group of answer choices $621.6

$352.6

$162.6

$231.45

Your boss has asked you to take a closer look at your companys credit policies. You have been given the following information:

Accounts receivable balance: $560,650

Average daily sales: $13,111

Weighted average cost of capital: 9%

Your firms days sales outstanding (DSO) is

3.

Howton & Howton Worldwide (HHW) is planning its operations for the coming year, and the CEO wants you to forecast the firm's additional funds needed (AFN). Data for use in the forecast are shown below. However, the CEO is concerned about the impact of a change in the payout ratio from the 10% that was used in the past to 50%, which the firm's investment bankers have recommended. Based on the AFN equation, by how much would the AFN for the coming year change if HHW increased the payout from 10% to the new and higher level? All dollars are in millions.

Last year's sales = S0 $300 Last year's accounts payable $50

Sales growth rate = g 40% Last year's notes payable $15

Last year's total assets = A0 * $500 Last year's accruals $20

Last year's profit margin = PM 20% Initial payout ratio 10%

New payout ratio 50%