please answer in details within 30 minutes. Consider the following balance sheet, for Moziah business. will his company be able to paycash to buy an asset with a cost of $400,000 knowing they have $1,600,000 in retainedearnings? If not, how will theybe able to buy those assets?Cash$ 100,000Accounts payable$ 200,000Inventory400,000Accruals200,000Accounts receivable500,000Total CL$ 400,000Total CA$1,000,000Debt400,000Net fixed assets$,1800,000Common stock400,000Retained earnings1,600,000Total assets$2,800,000Total L & E$2.800,000no

Given :- Cash required to buy an asset - 400,000 Retained earnings - 1,600,000 Particulars Amount…

Consider the following balance sheet, for Moziah business. will his company be able to pay cash to buy an asset with a cost of $400,000 knowing they have $1,600,000 in retained earnings? If not, how will they be able to buy those assets? $ 100,000 Accounts payable $ 200,000 Cash Inventory Accounts receivable 400,000 Accruals 200,000 500,000 Total CL $400,000 Total CA $1,000,000 Debt 400,000 Net fixed assets $,1800,000 Common stock 400,000 Retained earnings 1,600,000 Total assets $2,800,000 Total L & E $2,800,000 OU

Consider the following balance sheet, for Moziah business. will his company be able to pay cash to buy an asset with a cost of $400,000 knowing they have $1,600,000 in retained earnings? If not, how will they be able to buy those assets? $ 100,000 Accounts payable $ 200,000 Cash Inventory Accounts receivable 400,000 Accruals 200,000 500,000 Total CL $400,000 Total CA $1,000,000 Debt 400,000 Net fixed assets $,1800,000 Common stock 400,000 Retained earnings 1,600,000 Total assets $2,800,000 Total L & E $2,800,000 OU

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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