Stephens' Offrce Supply (SOS) fiscal year just ended. SOS had sales of $10.0 million and cost of goods sold of $4.{ million. Beginning inventory was $1.60 million and ending inventory was $2.0 million. What was SOS average inventory turnover? The industry average inventory' turnover is 4.4 times. If SOS can improve its inventory turnover to the industry average, then how much could it reduce its average inventory?

Provide formulas and calculations.