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CFA Level I Company Analysis: Forecasting question

Equity Investments / Company Analysis: Forecasting

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Company Analysis: Forecasting sample question

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Equity Investments

Company Analysis: Forecasting

An analyst forecasts next year's revenue at USD 730 million and cost of goods sold at USD 547.5 million. The company is expected to maintain days sales outstanding of 40 days and days inventory on hand of 60 days. Using a 365-day year, the forecast combined balance of accounts receivable and inventory is closest to:

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