Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Last year Dallas Designs had $500,000 of sales, and it expect sales to increase by 20% during the coming year. Dallas' CFO uses a simple

image text in transcribed
Last year Dallas Designs had $500,000 of sales, and it expect sales to increase by 20% during the coming year. Dallas' CFO uses a simple linear regression to forecast the company's required inventory for a given level of projected sales, and based on the firm's recent history, this equation was developed: Inventories =$22,000+0.125 (Sales). Based on this equation and the forecasted sales, what is the required level of inventories for the coming year? $88,000 $91,000 $94,000 $97,000 $100,000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Technical Analysis Of Stock Trends

Authors: Robert D. Edwards, John Magee

1st Edition

1607962233, 978-1607962236

More Books

Students also viewed these Finance questions