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Jersey Corporation's CFO uses this equation, which was developed by regressing inventories on sales over the past 5 years, to forecast inventory requirements: Inventories =
Jersey Corporation's CFO uses this equation, which was developed by regressing inventories on sales over the past 5 years, to forecast inventory requirements: Inventories = $22.0 + 0.125(Sales). The company expects sales of $125.0 million during the current year, and it expects sales to grow by 35% next year. What is the inventory forecast for next year? All dollars are in millions. a. $48.3 b. $40.5 c. $43.1 d. $40.1 e. $35.8
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