Slash Liquidators offers consumers a wide assortment of items from clothing to electronics at deep discount prices. Slash gets its products from companies who have had fires, flooding, bankruptcy or other disasters and want to get rid of all their stock very fast and very cheaply. The buyers at Slash love a deal and jump at the chance to get large amount of good quality merchandise at rock bottom prices Recently, when the owners decided to build a warehouse they found they didn't have the cash. Their accountant showed them that they had sales of $25,750,000 in the previous year but were holding inventories of $15,350,000. Their COGS is usually 60% of sales. How many inventory turns is Slash currently achieving? If they could reduce their inventory turns to 3.5 per year how much money would that release for their warehouse? If the warehouse allows them to service a new market and will bring them a 14% return, how much profit will they be making on their inventory reduction? ($) unless otherwise indicated Cost of Goods Sold Inventory Tums Inventory Level Reduction in Inventory Incremental Profit @ 14% SLASH LIQUIDATORS Current Targeted $0 $0 0.0 0 $0 $0 $0 $0