Consider the following balance sheet, for easy lunchbox. will the company be able to pay cash to buy an asset with a cost of $200,000 knowing they have $800.000 in retained earnings? Cash $ 50,000 Accounts payable $ 100,000Inventory 200,000 Accruals 100,000Accounts receivable 250,000 Total CL $ 200,000Total CA $ 500,000 Debt 200,000Net fixed assets $ 900,000 Common stock 200,000 Retained earnings 800,000Total assets $1,400,000 Total L & E $1,400,000
Consider the following balance sheet, for easy lunchbox. will the company be able to pay cash to buy an asset with a cost of $200,000 knowing they have $800.000 in retained earnings? Cash $ 50,000 Accounts payable $ 100,000Inventory 200,000 Accruals 100,000Accounts receivable 250,000 Total CL $ 200,000Total CA $ 500,000 Debt 200,000Net fixed assets $ 900,000 Common stock 200,000 Retained earnings 800,000Total assets $1,400,000 Total L & E $1,400,000
Financial Management: Theory & Practice
16th Edition
ISBN:9781337909730
Author:Brigham
Publisher:Brigham
Chapter12: Corporate Valuation And Financial Planning
Section: Chapter Questions
Problem 7P: Upton Computers makes bulk purchases of small computers, stocks them in conveniently located...
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Consider the following balance sheet, for easy lunchbox. will the company be able to pay cash to buy an asset with a cost of $200,000 knowing they have $800.000 in retained earnings ? Cash $ 50,000 Accounts payable $ 100,000Inventory 200,000 Accruals 100,000Accounts receivable 250,000 Total CL $ 200,000Total CA $ 500,000 Debt 200,000Net fixed assets $ 900,000 Common stock 200,000 Retained earnings 800,000Total assets $1,400,000 Total L & E $1,400,000
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