no sales value given

The AFN equation and the financial statement-forecasting approach both assume that assets grow at relatively the sarne rate as sales, However, the relationship between assets and sales is often a littie more difficult than that, In particular, some firms use regression analysis to predict the requirei assets needed to support a given level of sales. Incom Corp. has used its historical sales and asset data to estimate the following regression equations: ts sales to grow by 309 over the next year. Use the regression models to calculate Incom ories needed to support next year's sales. Based on the next year's accounts receivable and inventory levels predicted by Incom Corpis regression equations, the firm's Dso for inext year ia expected to be - Use 365 days as the length of a year in all calculations: relationship between assets and sales is often o little more difficult than that. In particular, some firms use regression analysis to predict the required assets needed to support a given level of sales. Incorn Corp. has used its historical sales and asset data to estimate the following regression equations: Corp's forecasted values for accounts red Inventories needed to support next yeer's sales. Based on the next year's accounts recelvable and inventory levals predicted by Incom Corpis regression equations, the firm's Dso for next yearis expected to be Use 365 days as the length of a year in all calculations. Dssed on the n 57.76 day: Junts receivable and inventery levels predicted by Incom Corpis regression equations, the firm's DSo for next year is expected to be Use 365 days as the length of a year in all caleulations