User Account

All Pages

What are your forecasts of the company year-end inventory

Assignment Help Finance Basics
Reference no: EM13287602

Regression and inventoriesJasper Furnishings has $400 million in sales. The company expects that its sales will increase 8% this year. Jasper's CFO uses a simple linear regression to forecast the company's inventory level for a given level of projected sales. On the basis of recent history, the estimated relationship between inventories and sales (in millions of dollars) is shown below.
Inventories = $35 + 0.21(Sales)

1. Given the estimated sales forecast and the estimated relationship between inventories and sales, what are your forecasts of the company's year-end inventory level? Round your answer to the nearest hundredth of million dollar.

2. What are your forecasts of the company's year-end inventory turnover ratio? Round your answer to two decimal places.

 

Reference no: EM13287602

Questions Cloud

How far away was the lightning bolt : It was a dark and stormy night, when suddenly you saw a flash of lightning. how far away was the lightning bolt
How much will you pay for a share today : The company will pay a $10 per share dividend in 10 years and will increase the dividend by 5% year thereafter. If the required an 11% return on the company's stock, how much will you pay for a share today?
What level of sales could walter industries have obtained : Walter Industries has $4 billion in sales and $1.6 billion in fixed assets. Currently, the company's fixed assets are operating at 90% of capacity.
Draw the network and determine the equivalent resistance : The first parallel combination is composed of a 6 ohm resistor and a 3 ohm resistor.the second parallel combination is composed of a 12 ohm resistorand a 6 ohm resistor. Draw the network and determine its equivalent resistance.
What are your forecasts of the company year-end inventory : What are your forecasts of the company's year-end inventory turnover ratio? Round your answer to two decimal places.
The company''s weighted cost of capital : The company's weighted cost of capital (WACC)
Explain how the number of moles of the gas varies : In the simulation, set the temperature of the sample gas to 304 . Click on the "Run" button and observe how the number of moles of the gas varies with an increase in the gas's volume
Determine what are the possible values for resistance : Two resistances having values of R and 3R are inparallel. R and the equivalent resistance are both integers. What are the possible values for R
How much cash would be freed-up : By how much would pre-tax profits change? Round your answer to the nearest cent.

Reviews

Write a Review

Finance Basics Questions & Answers

  Evaluate the realized rate of return for investors

Evaluate the realized rate of return for investors who purchased the bonds when they were issued and who surrender them today in exchange for the call price.

  How many shares will remain after the repurchase

Enter your answer in millions. For example, an answer of $1.2 million should be entered as 1.2, not 1,200,000. Round your answer to two decimal places.

  Determine last years average price

The current average selling value for a home in Canada is $275,000. If the current price is 7 2/3 percent lower than last year, determine last year's average price?

  Investment and opportunity cost-purchasing corvette

Select an asset you would like to purchase in five years. Compute how much you need to save for the next five years to purchase this asset

  Determine the dol of firm

The following are from the production statements of LMNO, Corporation Determine the DOL of this firm?

  Compute the net present value

Worldwide Scientific Equipment is considering a cash acquisition of Medical Labs for $2.7 million. Medical Labs will provide the following pattern of cash inflows and synergistic benefits for the next 25 years. There is no tax loss carryforward. U..

  Calculate realized compound yield of the bond

Consider an 8% coupon selling for $953.10 with three years until maturity making annual coupon payments. The interest rate in the next three years will be, with certainty r1 = 8% r2 = 10% r3 = 12%. Calculate realized compound yield of the bond.

  Find overall company net income

Jo's Coffee corporation have two stores in Arizona. Their corporate office is planning eliminating the one of their stores due to declining sales.

  What is the gain or loss on the futures contract

Suppose the December CBOT Treasury bond futures contract has a quoted price of 80-07. If annual interest rates go up by 1.00 percentage point, what is the gain or loss on the futures contract? (Assume a $1,000 par value, and round to the nearest w..

  Developing a wbs for this project

Determine the main advantages of developing a WBS for this project. Support your response.

  What is the required return

The next dividend payment by Blue Cheese, Inc., will be $1.52 per share. The dividends are anticipated to maintain a growth rate of 6 percent forever. If the stock currently sells for $28 per share, what is the required return?

  What is an expected return

What is an expected return and why must it equal a required return? In what circumstances are these two important?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd