Question: please answer correctly and i will give good rating The AfN equation and the financial statement-forecasting approach both assume that assets grow at relatively the

please answer correctly and i will give good rating
please answer correctly and i will give good rating The AfN equation
and the financial statement-forecasting approach both assume that assets grow at relatively

The AfN 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. Input Inc. hes used its historical sales and asset data to estimate the following regression equations: Input inc, currently has sales of $1,110,000, but it expects sales to grow by 25% over the next year. Use tha regreasion models te calculate Input Inci's forecasted values for accounts recelvable and inventorles needed to support next year's sales. Input Inc. currently has sales of $1,110,000, but it expects sales to grow by 25% over the next year, Use the regression models to calculate Input Inc's forecasted values for accounts receivable and inventories needed to support next year's sales. Based on the next year's accounte receivable and inventory levels predicted by Input Incis regression equations, the firmis DSo for next year is expected to be Use 365 days as the length of a year in all calculations

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