The Following Information Is Available for the Neptune Company for the Three

question 21

Multiple Choice

The following information is available for the Neptune Company for the three months ended March 31 of this year:

The gross margin was estimated to be 25 percent of sales. What is the estimated inventory balance at March 31?

• A) $350,000
• B) $450,000
• C) $562,500
• D) $600,000

---

Definitions:

Z-score

An index quantifying the position of a value relative to the average value in a dataset, expressed as the amount of standard deviations away from this mean.

Percentile

A value below which a given percentage of observations in a group of observations falls, used to understand and interpret data distributions.

Normal Curve

The normal curve, or the bell curve, represents the graphical depiction of a normal distribution with a symmetric shape where most outcomes cluster around the mean.

Standard Deviation

A measurement indicating the range of separation or variance among a set of data.