You are forecasting cash flows using regression analysis (sales is the independent variable). After estimating the regression model, you have recorded the following regression equation:

Net Cash Flow = $27,000 + (0.7*Sales). Use this model to:

1. Forecast net cash flow, assuming the next month's Sales will equal to $150,000
2. Evaluate your forecast from part (a), assuming that month has passed, in which the actual net cash flow was $145,000
3. Determine the impact of an additional $1 in sales on net cash flow.