Problem:
Fairchild Garden Supply expects $600 million of sales this year, and it forecasts a 15% increase for next year. The CFO uses this equation to forecast inventory requirements at different levels of sales: Inventories = $30.2 + 0.25(Sales). All dollars are in millions.
Required:
Question: What is the projected inventory turnover ratio for the coming year?
Note: Please explain comprehensively and give step by step solution.