Reference no: EM132950478
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 turnover50
Ending accounts receivable is the same as beginning accounts receivable.
Total liabilities$1,700,000
Current ratio4
Cash$510,000
Quick ratio3.5
Inventory turnover in days3.65
Problem 1: Calculate average inventory.