On January 1, 2014, Manuel Companys merchandise inventory was $300,000. During 2014, Manuel purchased $1,900,000 of merchandise

Question:

On January 1, 2014, Manuel Company’s merchandise inventory was $300,000. During 2014, Manuel purchased $1,900,000 of merchandise and recorded sales of $2,000,000. The gross profit margin on these sales was 20% of the selling price.

Required:
What is Manuel’s merchandise inventory at December 31, 2014?