Question
US Robotics Inc. has used the historical sales and asset data to estimate the following regression equations: ACCOUNTS RECEVIABLE = -$85,230 + .257(SALES) INVENTORIES: $9,900
US Robotics Inc. has used the historical sales and asset data to estimate the following regression equations:
ACCOUNTS RECEVIABLE = -$85,230 + .257(SALES)
INVENTORIES: $9,900 + .243(SALES)
The company currently has sales of $1,100,000 but expects to grow sales by 30% over the next year. Use the regression model to calculate the values for accounts receivable and inventory to support next years sales?
Based on the next year's accounts receivable and inventory levels predicted by the company regression equation. What is the DSO for next year expected to be?
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Derivatives And Internal Models
Authors: Hans Peter Deutsch, Mark W. Beinker
5th Edition
3030229017, 9783030229016
