Question
Problem 16-01 Inventory Management Williams & Sons last year reported sales of $10 million, cost of goods sold (COGS) of $8 and an inventory turnover
Problem 16-01
Inventory Management Williams & Sons last year reported sales of $10 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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Introductory Econometrics For Finance
Authors: Chris Brooks
2nd Edition
052169468X, 9780521694681
