Consider the Balance Sheet of Wilkes Industries as Shown Below

question 42

True/False

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 $100,000Inventory $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. Advise the options to buy or not to buy?

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Definitions:

Gang

An organized group of individuals often involved in criminal activities or behaviors that are intended to create a sense of identity or power within a community.

Automatic Acceptance

The unconditional and immediate acceptance of an individual or situation without the need for further verification or scrutiny.

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The middle-class refers to the economic group between the working class and the upper class, typically characterized by moderate income levels and stable employment.

Hidden Rules

Unspoken, informal guidelines or expectations that govern behavior within specific social groups or cultures.