Pink, Inc. sells women's clothes. Provided below is selected financial statement information: Pink, Inc. Selected Financial Statement Data (amounts shown in thousands) 

Fiscal Year                             2005        2004 

Net sales                             $47,895 $42,589 

Cost of Goods Sold            (35,952) (32,588) 

Gross profit                         $11,943 $10,001 

Inventory                              $ 5,548 $ 4,948 

Required: 

a. Compute the inventory turnover ratio for 2005. b. Pink, Inc. projects that sales will grow at a compound rate of 7% per year for the years 2006-2008, that the cost of goods sold to sales percentage will equal that realized in 2005, and that the inventory turnover will remain constant at the 2005 level.

Required

Compute the forecasted level of inventory from the end of 2006 to 2008.