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 Total CA $ 500,000 Debt 200,000 Net fixed assets $ 900,000 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 Total CA $ 500,000 Debt 200,000 Net fixed assets $ 900,000 Common stock 200,000 Retained earnings 800,000 Total assets $1,400,000 Total L & E $1,400,000

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 1PA: Your company is planning to purchase a new log splitter for is lawn and garden business. The new...

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