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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Concept explainers

Bookkeeping

Bookkeeping is the process of recording the financial transactions of a company on a regular basis. With the process of bookkeeping, companies can track important financial information that helps management in making crucial decisions.

Question

please answer in details within 30 minutes.

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?
Cash
$ 100,000
Accounts payable
$ 200,000
Inventory
400,000
Accruals
200,000
Accounts receivable
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
no

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