=+◗ Forty per cent of processing and set-up costs, and 30% of marketing and general administration costs, are depreciation.

Yummy-Pop Balance sheet as of 30 November Assets Cash $587 Accounts receivable $4 800 Less: Allowance for bad debts 96 4 704 Inventories Direct materials 169 Finished goods 974 Fixed assets $190 000 Less: Accumulated depreciation 55 759 134 241 Total assets $140 675 Liabilities and equity Accounts payable $696 Taxes payable 500 Interest payable 200 Long-term debt 20 000 Ordinary shares 10 000 Retained earnings 109 279 Total liabilities and equity $140 675