Your boss has asked you to take a closer look at your company's credit policies. You have been given the following information: Your firm's days sales outstanding (DSO) is Your boss is unhappy with your company's DSO and wants to bring it down to the industry average of 25 days. The marketing department told you that they expect sales to grow by 14% next year. This means that your company can expect to have an accounts receivable balance of next year. \begin{tabular}{l} $305,774 \\ $288,787 \\ \hline$339,749 \\ $254,812 \end{tabular} 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. General Products Co. has used its historical sales and asset data to estimate the following regression equations: General Products Co. currently has sales of $1,110,000, but it expects sales to grow by 30% over the next year. Use the regression models to calculate General Products Co.'s forecasted values for accounts receivable and inventories needed to support next year's sales. Based on the next year's accounts receivable and inventory levels predicted by General Products Co.'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. 61.52 days 67.67 days 58.44 days 55.37 days