Wayward Company wants to prepare interim financial statements for the

Wayward Company wants to prepare interim financial statements for the first quarter. The company wishes to avoid making a physical count of inventory. Wayward’s gross profit rate averages 34%. The following information for the first quarter is available from its records.

January 1 beginning inventory . . . . . . . . . $ 302,580

Cost of goods purchased . . . . . . . . . . . . 941,040

Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,211,160

Sales returns . . . . . . . . . . . . . . . . . . . . . . 8,410


Required

Use the gross profit method to estimate the company’s first quarter endinginventory.


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...

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