The Caraway Seed Company has grown rapidly over the last decade and is trying to forecast the
Question:
a. Use the percent of sales method for forecasting Caraways inventories for the next 5 years where the percent of sales is equal to the average of the percent of sales for the last 10 years.
b. The following graph includes a plot of the historical relationship between inventories and sales along with a line representing the percent of sales forecast. Analyze the forecast line compared to the plot of inventory and sales to see if you see any problems with the percent of sales forecast. Discuss.
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Related Book For
Foundations of Finance The Logic and Practice of Financial Management
ISBN: 978-0132994873
8th edition
Authors: Arthur J. Keown, John D. Martin, J. William Petty
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