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Consider the following balance sheet, for easy lunchbox. will the company be able to pay cash to buy an asset with a cost of $200,000

Consider the following balance sheet, for easy lunchbox. will the company be able to pay cash to buy an asset with a cost of $200,000 knowing they have $800.000 in retained earnings?

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 200,000

Net fixed assets $ 900,000 Common stock 200,000

Retained earnings 800,000

Total assets $1,400,000 Total L & E $1,400,000

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