Reference no: EM133042073
Question - Bryce Company manufactures pet supplies. However, Bryce's electronic accounting system recently crashed and, unfortunately, only a partial recovery of the company's year-end accounting records (which included several profitability ratios) was possible. As a result, Bryce's controller, a bright young CMA named Jeanette, must compute various lost financial account balances using the recovered information listed below.
Long-term liabilities $1,500,000
Ending inventory is the same as beginning inventory.
Gross margin $2,600,000
Net sales $7,800,000
Accounts receivable turnover 50
Ending accounts receivable is the same as beginning accounts receivable.
Total liabilities $1,700,000
Current ratio 4
Cash $510,000
Quick ratio 3.5
Inventory turnover in days 3.65
Required - Calculate average inventory.