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​A Financial Manager Needs to Forecast the Level of Inventory

question 23

Essay

​A financial manager needs to forecast the level of inventory. Currently inventory is 60 percent of sales. If the anticipated level of sales is $20,000, what is the level of inventory forecasted by the percent of sales method of forecasting? If the equation relating inventory and sales is I = $789 + 0.54S, what is the level of inventory forecasted by the regression equation?


Definitions:

OOS

Out Of Service; indicating that a device, system, or piece of equipment is not currently operational or fit for use.

Gear Lube Classifications

Standards that define the properties and specifications of lubricants used in gear systems to ensure proper functioning and longevity.

API GL-5

A classification of lubricants, defined by the American Petroleum Institute, indicating oil suitability for high-pressure conditions in vehicle axles and transmissions.

Zerk Fitting

A standard grease nipple. Its orifice is sealed with a spring-loaded ball that unseats when pressurized grease is applied to it.

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