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Consider the following balance sheet, for easy lunchbox. will the company be able to pay cash to buy an asset with a cost of $200,000 knowing they have $800.000 in retained earnings? Cash $ 50,000 Accounts payable $ 100,000 Inventory 200,000 Accruals 100,000 Accounts receivable 250,000 Total CL $ 200,000 $ 500,000 $ 900,000 Total CA Debt 200,000 Net fixed assets Common stock 200,000 Retained earnings 800,000 Total assets $1,400,000 Total L & E $1,400,000

Consider the following balance sheet, for easy lunchbox. will the company be able to pay cash to buy an asset with a cost of $200,000 knowing they have $800.000 in retained earnings? Cash $ 50,000 Accounts payable $ 100,000 Inventory 200,000 Accruals 100,000 Accounts receivable 250,000 Total CL $ 200,000 $ 500,000 $ 900,000 Total CA Debt 200,000 Net fixed assets Common stock 200,000 Retained earnings 800,000 Total assets $1,400,000 Total L & E $1,400,000

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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Consider the following balance sheet, for easy lunchbox. will the company be able to pay cash to buy an asset with a cost of $200,000 knowing they have $800.000 in retained earnings? Cash $ 50,000 Accounts payable S 100,000 Inventory 200,000 Аccruals 100,000 Accounts receivable 250,000 Total CL S 200,000 Total CA $ 500,000 Debt 200,000 Net fixed assets S 900,000 Common stock 200,000 Retained earnings 800,000 Total assets $1,400,000 Total L & E $1,400,000
Transcribed Image Text:Consider the following balance sheet, for easy lunchbox. will the company be able to pay cash to buy an asset with a cost of $200,000 knowing they have $800.000 in retained earnings? Cash $ 50,000 Accounts payable S 100,000 Inventory 200,000 Аccruals 100,000 Accounts receivable 250,000 Total CL S 200,000 Total CA $ 500,000 Debt 200,000 Net fixed assets S 900,000 Common stock 200,000 Retained earnings 800,000 Total assets $1,400,000 Total L & E $1,400,000
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