regression analysis to forecast assets

es to grow by 20% over the next year. Use the eded to support next year's sales. 5. Using regression analysis to forecast assets The AFN equation and the financial statement-forecasting approach both assume that assets grow at relatively the same rate as sales. However, the relationship between assets and sales is often a 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. Input Inc. has used its historical sales and asset data to estimate the following regression equations: Input Inc. currently has sales of $984,000, but it expects sales to grow by 20% over the next year. Use the regression modeis to calculate input incis forecasted values for accounts receivable and imventories needed to support next year's sales. Based on the next year's accounts receivable and inventory levels predicted by input inc's regression equations, the firm's DSo for next year is expected to be - Use 365 days as the length of a year in all calculations. Dased on the ne Dunts receivable and inventory levels predicted by Input Inc's regres expected to be . Use 365 daytas the length of a year in all calculations. es to grow by 20% over the next year. Use the ded to support next year's sales