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(Forecasting imentones) Findlay Instruments produces a complete line of modical instruments used Next questlon and has experionced rapld growth over the past 5 years. In

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(Forecasting imentones) Findlay Instruments produces a complete line of modical instruments used Next questlon and has experionced rapld growth over the past 5 years. In an effort to make more accurate predictions of its financing requirements. Findiay is currently attempting to construct a financial.plarning model based on the percent of sales forecasting method. However, the firm's chief financial analyst is concemed that the projoctions for invertories will be seriously in errot. She recognizes that the firm has bogun to accrue substantial economies of scale in its inventory investment and has documented this tact in the following data and calculations: a. Plot Findlay's sales and inventories for the past 5 years. What is the relationship between these two variables? b. Estmate firm inventories for 2019, when firm sales are projected to reach 530mili, Use the average percentage of sales for the past 5 years, the most recont parcontage of sales, and your evaluation of the true relationship between the sales and inventones from part a to make three predictions. a. Finday's sales and inventory balances for the past 5 years are plotied in the fgure below. Data table (Click on the following icon j in order to copy its contents into a spreadsheet.)

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