Below is the balance sheet for Grape Ape's Cheese Company. Since the firm has $900,000 of retained earnings, Grape Ape would be able to pay cash to purchase inventory that costs $325,000.

Cash	$ 50,000	Accounts payable	$ 50,000
Inventory	300,000	Accruals	150,000
Accounts receivable	250,000	Total CL	$ 200,000
Total CA	$ 600,000	Debt	200,000
Net fixed assets	$ 900,000	Common stock	200,000
	_________	Retained earnings	900,000
Total assets	$1,500,000	Total L & E	$1,500,000

True

False