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The Blue Corp. last year reported sales of $ 1 2 million, cost of goods sold of $ 1 0 million, and an inventory turnover

The Blue Corp. last year reported sales of $12 million, cost of goods sold of $10 million, 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 firms inventory level and increase the firms inventory turnover ratio to 5 while maintaining the same level of sales and COGS, how much cash will be freed up?

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