Answer:
1. 2.69 times
2. 135.70 days
Explanation:
The computation of inventory turnover is shown below:-
Inventory Turnover Ratio = Cost of Goods Sold ÷ Average Inventory
Average Inventory = Opening inventory + Closing Inventory ÷ 2
= ($109,841 + $150,221) ÷ 2
= $130,031
Inventory Turnover Ratio = $349,744 ÷ $130,031
= 2.69 times
The computation of days in inventory is shown below:-
Days in Inventory = Average Inventory ÷ Cost of Goods Sold × 365
= $130,031 ÷ $349,744 × 365
= 135.70 days