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 $ 50,000 Accounts payable $ 100,000

Inventory 200,000 Accruals 100,000

Accounts receivable 250,000 Total Current Liabilities $ 200,000

Total Current Assets $500,000 Debt 200,000

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

Retained earnings 800,000 Total assets $1,400,000 Total Liabilities & Equity $1,400,000