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How much cash be freed up as result of new inventory system

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Reference no: EM132967566

Problem 1: Assume the company work for reported sales of $10 million and an inventory turnover of 2. The company is now adopting a new inventory system as part of its working capital management. If the new system is able to reduce the company's inventory level and increase inventory turnover ratio to 5 while maintaining the same level sales, how much cash will be freed up as a result of the new inventory system.

Reference no: EM132967566

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