S. M. Ltd. supplies the following information for the accounting year. 2014-2015 : 3,50,000 20,000 40,000 26,000 66,000 Total sales (Revenue from Operations) Returns inward Inventory in the beginning of the year Inventory at the end of the year Gross profit for the year You are required to calculate : (a) Inventory Turnover Ratio (b) Inventory Convertion Period [Ans. (a) 8.0 times (b) 45.6 days or 46 days.]