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Consider the balance sheet of Wikileaks Industries as shown below. Because Wikileaks has $900,000 of retained earnings, do you think that the company would be

Consider the balance sheet of Wikileaks Industries as shown below. Because Wikileaks has $900,000 of retained earnings, do you think that the company would be able to pay cash to buy an asset with a cost of $300,000? Why or why not? Give logical arguments to support your answer. (minimum 250 words)

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

100,000

Net fixed assets

$ 900,000

Common stock

200,000

_________

Retained earnings

900,000

Total assets

$1,400,000

Total L & E

$1,400,000

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