dwards Industres nas million in sales. The company e basis of recent history, the estimated relationship betwe ven the estimated sales forecast and the estimated relatic 25,400,000 should be entered as 25.40. Do not round inte million hat are your forecasts of the company's year-end days sal days
dwards Industres nas million in sales. The company e basis of recent history, the estimated relationship betwe ven the estimated sales forecast and the estimated relatic 25,400,000 should be entered as 25.40. Do not round inte million hat are your forecasts of the company's year-end days sal days
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![Edwards Industries has $340 million in sales. The company expects that its sales will increase 15% this year. Edwards' CFO uses a simple linear regression to forecast the company's receivables level for a given level of projected sales. On
the basis of recent history, the estimated relationship between receivables and sales (in millions of dollars) is as follows:
Receivables = $9.75 + 0.13(Sales)
Given the estimated sales forecast and the estimated relationship between receivables and sales, what are your forecasts of the company's year-end balance for receivables? Enter your answer in millions. For example, an answer of
$25,400,000 should be entered as 25.40. Do not round intermediate calculations. Round your answer to two decimal places.
million
What are your forecasts of the company's year-end days sales outstanding (DSO) ratio? Assume 365 days in year for your calculations. Do not round intermediate calculations. Round your answer to two decimal places.
days](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F909b6d30-3e6f-43e5-b685-03f265528e33%2Fa4046878-c38b-4930-8b00-1bd2e3a6ec17%2F0ycmg2s_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Edwards Industries has $340 million in sales. The company expects that its sales will increase 15% this year. Edwards' CFO uses a simple linear regression to forecast the company's receivables level for a given level of projected sales. On
the basis of recent history, the estimated relationship between receivables and sales (in millions of dollars) is as follows:
Receivables = $9.75 + 0.13(Sales)
Given the estimated sales forecast and the estimated relationship between receivables and sales, what are your forecasts of the company's year-end balance for receivables? Enter your answer in millions. For example, an answer of
$25,400,000 should be entered as 25.40. Do not round intermediate calculations. Round your answer to two decimal places.
million
What are your forecasts of the company's year-end days sales outstanding (DSO) ratio? Assume 365 days in year for your calculations. Do not round intermediate calculations. Round your answer to two decimal places.
days
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