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. Corellian Engineering Corp. has used its historical sales and asset data to estimate the following regression equations: Corelian Engneering Corp. currently has sales of $984,000, but it expects sales to grow by 20%6 over the next year. Use the regression models to calculate Corellian Engineering Corpis forecasted values for accounts receivable and inventories needed to support next year's sales. Based on the next vear's accounts receivable and inventory levels predicted by Corelliari tingineering Corps 's regression equations, the firm's Dso for next year is expected to be Use 365 dars as the lenpth of a vear in all calculations. Corellian Engineering Corp. currently has 4,000 , but it exp calculate Corellian Engineering Corp.'s for es for accounts Forecasted Values for Next Year Accounts receivable Inventories Based on the next year's accounts receivable and inventory levels predi next year is expected to be Use 365 days as the leng Corellian Engineering Corp. currently has but it expects sales calculate Corellian Engineering Corp.'s fol accounts receivable Forecasted Values for Next Year Accounts receivable Inventories Based on the next year's accounts receivable and inventory levels predicted by next year is expected to be Use 365 days as the length of a y Based on the next year's ai ble and inventory levels predicted next year is expected to be Use 365 days as the length of