Edwards industries has 280 million in sales the company


Regression and receivables

Edwards Industries has $280 million in sales. The company expects that its sales will increase 20% 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 = $14.75 + 0.06(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 $25,000,000 should be entered as 25. Round your answer to two decimal places.

$   million

What are your forecasts of the company's year-end days sales outstanding (DSO) ratio? Assume that DSO is calculated on the basis of a 365-day year. Round your answer to two decimal places.

days

Request for Solution File

Ask an Expert for Answer!!
Financial Management: Edwards industries has 280 million in sales the company
Reference No:- TGS01559765

Expected delivery within 24 Hours