Question: 5. Using regression analysis to forecast assets relationship between assets and sales is often a little more difficult than that. In particular, some firms use

5. Using regression analysis to forecast assets relationship between assets and

5. Using regression analysis to forecast assets 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. Axis Chemical Co. has used its historical sales and asset data to estimate the following regression equations: Chemical Co.'s forecasted values for accounts receivable and inventories needed to support next year's sales. Based on the next year's accounts receivable and inventory levels predicted by Axis Chemical Co.'s regression equations, the firm's DSO for next year is expected to be . Use 365 days as the length of a year in all calculations

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