Reduce the firm inventory level

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Reference no: EM131328135

Williams & Sons last year reported sales of $12 million, cost of goods sold 10 million, and an inventory turnover ratio of 2. 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: EM131328135

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