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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 $ million in sales. The company expects that
its sales will increase 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 $
Given the estimated sales forecast and the estimated relationship
between inventories and sales, what are your forecasts of the
company's yearend 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 yearend inventory turnover
ratio assuming that its cost of goods sold is of sales? Do not round
intermediate calculations. Round your answer to two decimal places.
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