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 $200,000.
Cash$     50,000
Accounts payable$   100,000
Inventory200,000
Accruals     100,000
Accounts receivable     250,000
Total CL$   200,000
Total CA$   500,000
Debt200,000
Net fixed assets$   900,000
Common stock200,000
 _________
Retained earnings     800,000
Total assets$1,400,000
Total L & E$1,400,000

Answer the following statement true (T) or false (F)


False

Business

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