True/False

3. Consider the balance sheet of Wilkes Industries as shown below. Because Wilkes has $800,000 of retained earnings, the company would be able to pay cash to buy an asset with a cost of $200,000. Cash Inventory Accounts receivable Total CA Net fixed assets s 50,000 Accounts payable 200,000 Accruals 250.,000 Total CL 500.000 Debt $ 100,000 100.000 S 200,000 200,000 200,000 s 900,000 Common stock Retained earnings Total L& E Total assets S1400.000 1.400.000