5. Using regression analysis to forecast assets The ARN equation and the financial statement-forecasting approach 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. Mainway Toys Co. has used its historical sales and asset data to estimate the following regression equations: Mainwoy Toys Co. currently has sales of $984,000, but it expects sales to grow by 30% over the next year. Use the regression models to calculate Mainway Toys 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 Mainway Toys Cois regression equations, the ficmis Dso for next year is expected to be Use 365 days as the length of a year in all calculations. Mainway Toys Co. currently has sales of $ Mainway Toys Co.'s forecasted values for $219,211 \begin{tabular}{l} Mainway Toys Co. currently has sales of $191,677 t it expects sales to grov \\ Mainway Toys Co.'s forecasted values for \\ $239,596ForecastedValuesforNextYear$215,636 \\ \hline Accounts receivable \\ Inventories \end{tabular} is expected to be - Use 365 days as the length of a year in all calculations