4. Using regression analysis to forecast assels The AFN equation and the finandal statement-forecasting approad both assume that assets grow at relatively the same rate as sales. However, the relationship between assets and sales is often a little more difficult than that. In particular, some firms use regression analysis to predict the required assets needed to support a given level of sales. General Forge and Foundry Co. has used its historical sales and asset data to ectimate the following regression equations: General Forge and Foundry Co, currently has sales of $900,000, but it expects sales to grow by 25% over the next year. Use the regression models to calculate General Forge and Foundry Co.'s forecasted values for accounts receivable and inventones needed to support next year's sales. Based on the next year's accounts receivable and imventory levels predicted by General forge and Foundry Co.'s regression equabions, the firm's DSO for next year is expected to be - Use 365 days as the fength of a year in all calculations