Series 86/87 Practice Test 1

10 free Series 86/87 practice questions in the real exam format, covering the official content areas, with an explanation for every answer.

Series 86/87 Practice Test 1Tutor mode

Question 1 of 10

Valuation and Forecasting

Bramble Tools ended FY1 with inventory of $240 million on cost of goods sold of $1,460 million (60 days). For FY2E, the analyst forecasts revenue of $2,200 million at a 27.0% gross margin and assumes management meets its target of 50 days of inventory on year-end inventory. Using a 365-day year, how much cash will the change in inventory provide in FY2E ($ millions)?