# Greenlight different to bpp textbook

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Question 2
Insert the correct amounts into the sentence based on the following information, using the drop down options.
A business has inventories at the beginning of the year of £400,000 and at the end of the year of £450,000. During the year the business had sales revenue of £4,250,000 and cost of sales of £3,650,000, providing a gross profit of £600,000. The inventory holding period is days.

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Ive just done the above question in green light. In my textbook it gives me the calculation as

average inventory/cost of sales x 365.

Average inventory is opening inventory + closing inventory / 2.

this is what i did and i did 425000/3650000 = 42 days.

Inventory holding period (in days) = closing inventories / cost of sales x 365 days = (£450,000 / £3,650,000) x 365 days = 45 days.

In my text book by bpp it states only use closing inventory if we only have the closing inventory and not both closing and opening. if we have both it advises to use average inventory.

Not sure which is correct approach?

Thanks Zaf