Inventory Management Williams & Sons last year reported sales of $98 million, cost of goods sold (COGS) of $80 and an inventory turnover ratio of 5. 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 8 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. Cost of Trade Credit What are the nominal and effective costs of trade credit under the credit terms of 1/20, net 30? Assume 365 days in a year for your calculations. Round your answers to two decimal places. Do not round intermediate calculations. Nominal cost of trade credit Effective cost of trade credit % Receivables Investment Snider Industries sells on terms of 3/10, net 35. Total sales for the year are $960,000. Thirty percent of customers pay on the 10th day and take discounts the other 70% pay, on average, 40 days after their purchases. Assume 365 days in year for your calculations. a. What is the days sales outstanding? Round your answer to one decimal place. days b. What is the average amount of receivables? Round your answer to the nearest dollar. Do not round intermediate calculations. c. What would happen to average receivables if Snider toughened its collection policy with the result that all nondiscount customers paid on the 35th day? Round your answer to the nearest dollar. Do not round intermediate calculations