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Jasper Furnishings has $ 4 0 0 million in sales. The company expects that its sales will increase 1 5 % this year. Jasper's CFO

Jasper Furnishings has $400 million in sales. The company expects that
its sales will increase 15% this year. Jasper's CFO uses a simple linear
regression to forecast the company's inventory level for a given level of
projected sales. On the basis of recent history, the estimated
relationship between inventories and sales (in millions of dollars) is as
follows:
Inventories =$30+0.210(Sales)
Given the estimated sales forecast and the estimated relationship
between inventories and sales, what are your forecasts of the
company's year-end inventory level? Enter your answer in millions of
dollars. Do not round intermediate calculations. Round your answer to
three decimal places.
$, million
What are your forecasts of the company's year-end inventory turnover
ratio assuming that its cost of goods sold is 75% of sales? Do not round
intermediate calculations. Round your answer to two decimal places.
x
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