Maxxim Inc. expects $580 million of sales this year, and it forecasts a 15% increase for next year. The CFO uses this eq
Posted: Wed Jul 06, 2022 6:44 pm
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?