Williams Sons last year reported sales of $12 million, cost of goods sold (COGS) of $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 ...

Sales COGS 10000000 S I Inventory turnover COGS Invent ...

Williams & Sons last year reported sales of $12 million, cost of goods sold (COGS) of $10

Question:

Williams & Sons last year reported sales of $12 million, cost of goods sold (COGS) of $10 million, and an 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 to 5 while maintaining the same level of sales and COGS, how much cash will be freed up?
Inventory Turnover Ratio
Inventory Turnover RatioThe inventory turnover ratio is a ratio of cost of goods sold to its average inventory. It is measured in times with respect to the cost of goods sold in a year normally. Inventory Turnover Ratio FormulaWhere,...