Suppose a company's cost of goods sold for years 2 and 3 were $244,205 and $260,240 respectively. Also suppose that inventory had a balance of $29,970 at the end of year 1, $30,389 at the end of year 2, and $31,568 at the end of year 3. If the annual growth in total revenues is 6.26% for the foreseeable future, calculate the forecasted inventory balance at the end of year 5. Assume the same inventory turnover in all future years as that in year 3 calculated using the average asset balances. Also assume the same gross margin % in all future years as that in year 3. Note that year 3 is the latest year with reported results, while years 4 onwards are all forecasted years.

Question 14 options:

	$35,689
	$36,582
	$37,474
	$38,366
	$39,258