Compute Timmers ending inventory balance

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Question - In 2020, Timmers, Inc. (a retail clothing company) sold 600,000 units of its product at an average price of $50.00 per unit. The company reported estimated returns and allowances in 2020 of 0.8 percent of gross revenue. Timmers actually purchased 510,000 units of its product from its manufacturer in 2020 at an average cost of $38.00 per unit. Timmers began 2020 with 52,000 units of its product in inventory (carried at an average cost of $38.00 per unit). Operating expenses (excluding depreciation) for Timmers, Inc. in 2020 were $2,520,000 and depreciation expense was $850,000. Timmers had $8,500,000 in debt outstanding throughout all of 2020. This debt carried an average interest rate of 7.5 percent. Finally, Timmers' tax rate was 30 percent. Timmers' fiscal year runs from January 1 through December 31. Given this information, compute net income for Timmers for 2020. Referring back to the previous problem, compute Timmers' ending inventory balance for 2020 (that is, what did Timmers report as inventory on its December 31, 2020 balance sheet).

Reference no: EM133005264

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