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Pinewood Café & Bistro has total assets of $22 million, of which $14 million are current assets. Cash makes up 15% of the current assets, and accounts receivable make up 35% of the current assets. Pinewood's gross plant and equipment have a book value of $18 million, and other long-term assets have a book value of $600,000. Required: 1. What is the balance of inventory? 2. What is the balance of depreciation on Pinewood Café & Bistro's balance sheet?

Pinewood Café & Bistro has total assets of $22 million, of which $14 million are current assets. Cash makes up 15% of the current assets, and accounts receivable make up 35% of the current assets. Pinewood's gross plant and equipment have a book value of $18 million, and other long-term assets have a book value of $600,000. Required: 1. What is the balance of inventory? 2. What is the balance of depreciation on Pinewood Café & Bistro's balance sheet?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Please answer the following requirements on these financial accounting question

Pinewood Café & Bistro has total assets of $22 million, of which $14 million are current assets. Cash makes up 15% of the current assets, and accounts receivable make up 35% of the current assets. Pinewood's gross plant and equipment have a book value of $18 million, and other long-term assets have a book value of $600,000. Required: 1. What is the balance of inventory? 2. What is the balance of depreciation on Pinewood Café & Bistro's balance sheet?
Transcribed Image Text:Pinewood Café & Bistro has total assets of $22 million, of which $14 million are current assets. Cash makes up 15% of the current assets, and accounts receivable make up 35% of the current assets. Pinewood's gross plant and equipment have a book value of $18 million, and other long-term assets have a book value of $600,000. Required: 1. What is the balance of inventory? 2. What is the balance of depreciation on Pinewood Café & Bistro's balance sheet?
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