Maxxim Inc. expects $580 million of sales this year, and it forecasts a 15% increase for next year. The CFO uses this eq

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answerhappygod
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Maxxim Inc. expects $580 million of sales this year, and it forecasts a 15% increase for next year. The CFO uses this eq

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Maxxim Inc. expects $580 million of sales this year, and itforecasts a 15% increase for next year. The CFO uses this equationto forecast inventory requirements at different levels of sales:Inventories = $30.2 + 0.25(Sales). All dollars are in millions. Thefirm's cost of goods sold is expected to be 70% of sales. What is the projected inventory turnover ratio for the comingyear?
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