Consider the following balance sheet, for games inc. because games has $800,000 of retained earnings, we know that 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 cl $ 200,000 total ca $ 500,000 debt 200,000 net fixed assets $ 900,000 common stock 200,000 retained earnings 800,000 total assets $1,400,000 total l & e $1,400,000
a. true
b. false