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Compute its expected cost savings for the coming year

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Question - Heartland Company's budgeted sales and budgeted cost of goods sold for the coming year are $144,940,000 and $102,600,000, respectively. Short-term interest rates are expected to average 10%. If Heartland can increase inventory turnover from its present level of 8 times a year to a level of 12 times per year.

Compute its expected cost savings for the coming year.

Reference no: EM132060065

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