Question
Williams & Sons last year reported sales of $110 million, cost of goods sold (COGS) of $90 and an inventory turnover ratio of 5. The
Williams & Sons last year reported sales of $110 million, cost of goods sold (COGS) of $90 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 9 while maintaining the same level of sales and COGS, how much cash will be freed up?
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Practical Financial Management
Authors: William R. Lasher
6th Edition
1439080496, 978-1439080498
