Problem:
Brenda's Bar and Grill has total assets of $21.0 million, of which $15.0 million are current assets. Cash makes up 10 percent of the current assets and accounts receivable makes up another 40 percent of current assets. Brenda's gross plant and equipment has a book value of $17.5 million and other long-term assets have a book value of $800,000.
Required:
Question: What is the balance of inventory and the balance of depreciation on Brenda's Bar and Grill's balance sheet?
Note: Provide support for your rationale.