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(Forecasting inventories) Findlay instruments produces a complete line of medical instruments used by plastic surgeons and has experionced rapid growth over the past 5 years

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(Forecasting inventories) Findlay instruments produces a complete line of medical instruments used by plastic surgeons and has experionced rapid growth over the past 5 years In an effort to make more occurate predictions of its financing requirements, Findlay is currently attempting to construct a financial planning model based on the percent of sales forecasting method Howover, the firri's chief finandial analyst is concerned that the projections for inventorins will be serlously in error. She recognizes that the firm has beguin to accrue substantial economies of scale in its inventory investment and has documented this fact in the following data and calculations. a. Plot Findlay's sales and irventories 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 $30 milion. 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 prodictions. Which of the folowing best defines the relationship between these two variables? (Select the best choice below) A. A linear function B. An exponential function C. A logarithmic cylinder function D. A parabolic function F. A hyperbolic function. b. Use the average percentage of sales for the past 5 years to make the prediction. What are the frrmis projected inventories for 2019 when the sales are projected to reach $30 million? I (Round to the nearest dollar)

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