How much cash will be freed up

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Question - Williams & Sons last year reported sales of $49 million, cost of goods sold (COGS) of $40 million, and an inventory turnover ratio of 4. The company is now adopting a new inventory system. If the new system is able to reduce the firm's inventory level and increase the firm's inventory turnover ratio to 5 while maintaining the same level of sales and COGS, how much cash will be freed up?

Reference no: EM133131481

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