Assignment 16-Financial Planning and Forecasting Back to Assugmment Attempts Keep the Highest: 13 Attention: Due to a biug in Google Chrome, this page may not function correctly.dick here to learn more 6. Using regression analysis to forecast assets Aa Aa The AFN equation and the financial statement-forecasting approach both asume that assets grow at relatively the sarme rate as sales. However, the relat onship between assets and sales is often alittle more difficult than that. In partiaular, some frms use regression analysis to predict the required assets neded to support a given leve of ales. Axis Chermical Co, has used its historical sales and asset data to estimate the following regression equations Accounts Receivable -$85,230 + 0.255(Sales) Inventories$8,765 + 0211(Sales) Axis Chemical Co. currently has sales of $900,000, but t expects sales to grow by 15% over the next er. Use the regression mode's to calculate Axis Chemical Co. 's torecasted values for accounts recevable and inventories needed to support next years sales. Forecasted Values for Next Year Accounts receivable Inventories | Based on the next year's accounts receivable and inventory levels predictod by Avis Chemical Co's repression equations, the firm's DSO for next year is expected to be calculations. Use 365 days as the length of a year in al