The Following Information Is Available for the Williston Company for the Month

question 99

Essay

The following information is available for the Williston Company for the month ended September 30:
$\begin{array}{lc}\text { Inventory, September 1 } & \$ 600,000 \\\text { Purchases } & 2,250,000 \\\text { Freight In } & 150,000 \\\text { Sales } & 3,200,000\end{array}$ The gross margin was 40 percent of sales. What is Williston's estimated inventory balance at September 30?

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Definitions:

Balance Sheet

A financial statement that shows a company's assets, liabilities, and shareholders' equity at a specific point in time, providing insight into its financial condition.

Incremental Borrowing Rate

This rate is the interest a company would have to pay if it borrows funds, serving as a benchmark in lease agreements to determine lease liabilities and right-of-use assets.

Annual Payments

Payments made once a year, often related to loans, leases, or other financial agreements.

Balance Sheet

A financial statement that summarizes a company's assets, liabilities, and shareholders' equity at a specific point in time, providing a snapshot of the firm's financial condition.