Question: In the previous year, Baker reported $ 1 9 million in sales, $ 9 million in cost of goods sold ( COGS ) , and

In the previous year, Baker reported $

19

million in sales, $

9

million in cost of goods sold

(

COGS

),

and an inventory turnover ratio of

2 .

The business is currently implementing a new inventory system. How much cash will be freed up if the new system is able to lower the company's inventory level and raise the inventory turnover ratio to

6

while keeping the amount of sales and COGS the same?

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