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i got different answers for this question here. if i can get another detailed opinion please. thanks Exercise 1 Consider the balance sheet of Wikileaks
i got different answers for this question here. if i can get another detailed opinion please. thanks
Exercise 1 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. Cash $ $ 100,000 50,000 Accounts payable 200,000 Accruals Inventory 100,000 Accounts receivable 250,000 Total CL $ 200,000 100,000 Total CA $ 500,000 Debt Net fixed assets $ 900,000 Common stock 200,000 Retained earnings 900,000 Total assets $1,400,000 Total L & E $1,400,000Step by Step Solution
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