Reference no: EM132950482

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 ratio4

Cash$510,000

Quick ratio3.5

Inventory turnover in days3.65

Problem 1: Calculate average inventory.