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Adopting a new inventory system
Course:- Business Economics
Reference No.:- EM132281306




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Inventory Management

Williams & Sons last year reported sales of $11 million, cost of goods sold (COGS) of $8 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 4 while maintaining the same level of sales and COGS, how much cash will be freed up? Do not round intermediate calculations. Round your answer to the nearest dollar.




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