Brenda's Bar and Grill Has Total Assets of $17 Million

question 4

Multiple Choice

Brenda's Bar and Grill has total assets of $17 million of which $5 million are current assets. Cash makes up 12 percent of the current assets and accounts receivable makes up another 40 percent of current assets. Brenda's gross plant and equipment has a cost value of $12 million and other long-term assets have a cost value of $1,000,000. Using this information, what are the balance of inventory and the balance of depreciation on Brenda's Bar and Grill's balance sheet?

• A) $2.4 million; $1 million
• B) $3.4 million; $2 million
• C) $1.4 million; $1 million
• D) $0.4 million; $3 million

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Definitions:

Trade

The exchange of goods, services, or both between two parties, either within an economy or between economies.

Mississippian Societies

Pre-Columbian Native American cultures that thrived in the Mississippi Valley, known for their large earthen mounds and complex societal structures.

De Soto

A Spanish explorer and conquistador, Hernando de Soto, known for his expeditions in the Americas, including the southeastern United States.

Decline

Decline refers to the process of decreasing in quality, quantity, or importance over a period of time.