Knick-Knacks wants to estimate its ending inventory balance for its quarterly financial statements for the first quarter

Question:

Knick-Knacks wants to estimate its ending inventory balance for its quarterly financial statements for the first quarter of the year. Given the following, what is your best estimate?

Beginning inventory $3,800

Net sales $9,500

Net purchases $5,500

Gross profit ratio 20%

Ending Inventory
The ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula Ending Inventory Formula =... Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...