Question
consider the following balance sheet: cash $70,000, accounts receivable $30,000, inventories $50,000, net fixed assets $350,000, total assets $500,000, accounts payable $30,000, long term debt
consider the following balance sheet: cash $70,000, accounts receivable $30,000, inventories $50,000, net fixed assets $350,000, total assets $500,000, accounts payable $30,000, long term debt $20,000, common stock $200,000, retained earnings $250,000, total liabilities and equity $500,000. assume that the business uses $30,000 of its cash to pay salaries. which of the following statements reflects the resulting balance sheet change? a) there is a change to the left-hand side only. b) there is a change to the right hand side only. c) the cash account decreases by $30,000, and the retained earnings account is reduced by $30,000. d) the cash account decreases by $30,000, and the long term debt account is reduced by $30,000. e) the company does not have the ability to pay $30,00 in salaries.
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