Exercise 1 Consider the balance sheet of Wilkes Industries as shown below. Because Wilkes has $800,000 of retained earnings, do you think that the company would be able to pay cash to an asset with a cost of $200,000? Why or why not? Give logical arguments to support buy your answer. $ 50,000 Accounts payable Cash $100,000 Inventory 200,000 Accruals 100,000 $ 200,000 Accounts receivable 250,000 Total CL 500,000 Debt Total CA 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