. . NEED ANSWER ASAP / ANSWER NEVER USED BEFORE a.) Inventory Management Williams &...
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Accounting
.
. NEED ANSWER ASAP / ANSWER NEVER USED BEFORE
a.)
Inventory Management
Williams & Sons last year reported sales of $7 million, cost of goods sold (COGS) of $4 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 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. Enter your answer in dollars. For example, an answer of $1.23 million should be entered as 1,230,000,000. Round your answer to the nearest dollar.
$
b.)
Accounts Payable
A chain of appliance stores, APP Corporation, purchases inventory with a net price of $450,000 each day. The company purchases the inventory under the credit terms of 1/15, net 40. APP always takes the discount but takes the full 15 days to pay its bills. What is the average accounts payable for APP? Round your answer to the nearest dollar.
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