Estimated relationship between inventories and sales

Reference no: EM13287528

Tiffianys 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: EM13287528

Questions Cloud

Find the magnitude of the crankshafts angular acceleration : Graphing either versus or versus gives a straight line. In the graph shown above, we chose to plot on the vertical axis, find the magnitude of the crankshaft's angular acceleration

Explain percentage of copper in copper nitrate trihydrate : What is the percentage of copper (by mass) in copper(II) nitrate trihydrate. Cu(NO3)2 : 3H20

Calculate by hand or with a calculator the partial fraction : calculate by hand or with a calculator the partial fraction expansion of the following transfer functions a) G6= [ 5(s+2)] / [ s(s2+8s+15)] b) G7= [ 5(s+2)] / [ s(s2+6s+9)] c) G8= [ 5(s+2)] / [s(s2+6s+34)]

Calculate the difference in final speeds of the two spheres : Two metal spheres, each of mass 20 g and initially at rest, are dropped from a height of 10 m in an evacuated chamber. Find the difference in final speeds of the two spheres

Estimated relationship between inventories and sales : On the basis of recent history, the estimated relationship between inventories and sales (in millions of dollars) is shown below.

Evaluate the equilibrium concentration of la3+ : Compute the equilibrium concentration of La3+ in the resulting solution. Ignore activity coefficients. Ksp = 1.0 x 10-11 use the below equation to find the net ionic equation. KIO3(aq) + La(NO3)3(aq) ---> La(IO3)3(s) + KNO3(aq)

Calculate the resistivity of the leaf tissue : Resistivity measurements on the leaves of corn plants are a good way to assess stress and overall health. What is the resistivity of the leaf tissue

What level of sales could honey industries have : Honey 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.

Explain what is the dissociation constant kd : What is the dissociation constant, Kd, of a ligand with a percent occupancy (or fractional saturation) of 50% when [ligand] = 10-7 M

User Account

All Pages