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(16-1) Cash Management Williams Sons last year reported sales of $10 million and an inventory turnover ratio of 2. The company is now adopting a...

(16-1)Cash ManagementWilliams & Sons last year reported sales 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 firm’s inventory level and increase the firm’s inventory turnover ratio to 5 while maintaining the same level of sales, how much cash will be freed up?(16-2)Receivables InvestmentMedwig Corporation has a DSO of 17 days. The company averages $3,500 in credit sales each day. What is the company’s average accounts receivable?(16-3)Cost of Trade CreditWhat is the nominal and effective cost of trade credit under the credit terms of 3/15, net 30?

Question: Cash ManagementWilliams & Sons last year reported sales of $10 million and an inventory turnover ratio of 2. The company is now adopting a new inventory system. If the new system is...
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