On March 1, 2016, Widget will sell $5,000,000 of its existing inventory to User Friendly, Inc. (Friendly), one of Widget's supply chain partners. Legal title will pass at the time of the sale. Friendly will use the inventory as collateral to obtain a $5,800,000 loan (with Widget guaranteeing the loan), which will be paid to Widget on April 15, 2016 as payment for the inventory. Widget will agree to repurchase the same inventory from Friendly on January 15, 2017 (after Widget's year-end) for $5,900,000 (which will include storage and insurance charges, plus any interest paid by Friendly to the bank). Friendly will transport the inventory and store it in a public warehouse until the repurchase.