Reference no: EM132751669

Billy Big is open 250 days each year and achieved sales of RM9 million with a gross profit of 60% of sales. At the end of the year, the following information are available:

Average         Accounts receivable            Average Inventory

                          Average                                       Accounts payable

RM1,200,000        RM 450,000                          RM1,400,000

Problem i: Compute the inventory turnover period.

Problem ii: Interpret the inventory turnover period which you have computed in (i).