A financial manager needs to forecast the level of inventory. Currently inventory is 60 percent of sales. If the anticipated level of sales is $20,000, what is the level of inventory forecasted by the percent of sales method of forecasting? If the equation relating inventory and sales is I = $789 + 0.54S, what is the level of inventory forecasted by the regression equation?
A financial manager needs to forecast the level of inventory. Currently inventory is 60 percent of sales. If the anticipated level of sales is $20,000, what is the level of inventory forecasted by the percent of sales method of forecasting? If the equation relating inventory and sales is I = $789 + 0.54S, what is the level of inventory forecasted by the regression equation?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:A financial manager needs to forecast the level of inventory. Currently inventory is 60 percent of sales. If the
anticipated level of sales is $20,000, what is the level of inventory forecasted by the percent of sales method
of forecasting? If the equation relating inventory and sales is I = $789 + 0.54S, what is the level of inventory
forecasted by the regression equation?
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