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  3. edwards industries has $450 million in sales. the

Edwards Industries has $450 million in sales. The company expects that its sales will increase...

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Accounting

Edwards Industries has $450 million in sales. The company expects that its sales will increase 10% this year. Edwards CFO uses a simple linear regression to forecast the companys receivables level for a given level of projected sales. On the basis of recent history, the estimated relationship between receivables and sales (in millions of dollars) is as follows: Receivables = 9.5 + 0.09(Sales) Given the estimated sales forecast and the estimated relationship between receivables and sales, what are your forecasts of the companys year-end balance for receivables and its year-end days sales outstanding (DSO) ratio? Assume that DSO is calculated on the basis of a 365-day year.

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