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:

Fixed-Income

Investments that generate a regular, fixed amount of income, typically through interest or dividends, like bonds and treasury bills.

Net Asset Value

The total value of a fund's assets minus its liabilities, often used to determine the value of a share of investment such as in a mutual fund or ETF.

Year-End Assets

The total value of all assets owned by an entity at the end of a financial year.

Liabilities

Financial obligations or debts that an entity owes to others, which can impact a company's net worth and financial health.