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Suppose that Kamath-Meier Corporations CFO uses this equation, which was developed by regressing inventories on sales over the past 5 years, to forecast inventory requirements:

Suppose that Kamath-Meier Corporations CFO uses this equation, which was developed by regressing inventories on sales over the past 5 years, to forecast inventory requirements: Inventories = $22.0 + 0.125(Sales). The company expects sales of $400 million during the current year, and it expects sales to grow by 30% next year. All dollars are in millions. What is the inventory forecast for next year?

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