Question: I need help calculating ratios as 30 June. The first one is the Inventory Turnover Ration. Opening inventory is $0 and closing inventory is 9334.

I need help calculating ratios as 30 June. The first one is the Inventory Turnover Ration. Opening inventory is $0 and closing inventory is 9334. COG is $22914. The business uses the periodic inventory and has only been in business from 01 April to 30 June and this is period we are preparing the ratios for.

The second ratio is the Number days inventory is held. For this we need to take into account that the business has only been in operation for 91 days (April to June).

My answer was the following:

Inventory Turnover Ration = 2.457

Number of days inventory is held = 148.79

These were marked as incorrect.

What would the correct answer be?

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