1. This year, ABC had sales of $18,950,000 and an Inventory Turnover Ratio (Sales Basis) of 8.7. ABC projects that next year, its sales will grow by 10 percent while its Inventory Turnover Ratio (Sales Basis) will drop to 8.4. If that happens, what will be the total dollar change in inventory between this year and next year?
2. ABC Company's Accounts Receivable Turnover Ratio is 9.1. If sales increase this year from 409,000 to 568,000 and the Accounts Receivable Turnover Ratio stays the same, by how much will Accounts Receivable increase this year?.