Question: How much additional cash could a company obtain from its working capital accounts if it can improve its inventory turnover by 0.2 times and average

How much additional cash could a company obtain from its working capital accounts if it can improve its inventory turnover by 0.2 times and average collection period by 5 days? The company’s inventories are $500,000, and trade receivables are $250,000. The company’s revenue is estimated at $1.8 million and cost of sales at $900,000.

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