Williams & Sons last year reported sales of $37 million,cost of goods sold (COGS) of $30 and an inventory turnover ratio of2. The company is now adopting a new inventory system. If the newsystem is able to reduce the firm's inventory level and increasethe firm's inventory turnover ratio to 5 while maintaining the samelevel of sales and COGS, how much cash will be freed up? Do notround intermediate calculations. Round your answer to the nearestdollar.
