Consider the Following Balance Sheet, for Games Inc

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. $$\begin{array} { l r l r } \text { Cash } & \$ 50,000 & \text { Accounts payable } & \$ 100,000 \\\text { Inventory } & 200,000 & \text { Accruals } & \underline{100,000} \\\text { Accounts receivable } & \underline{250,000} & \text { Total CL } & \underline{\$ 200,000} \\\text { Total CA } & \$ \underline{500,000} & \text { Long-term debt } & 200,000 \\\text { Net fixed assets } & \$ 900,000 & \text { Common stock } & 200,000 \\& & \text { Retained earnings } & 800,000 \\\text { Total assets } & \$ 1,400,000 & \text { Total L \& E } & \$ 1,400,000 \\\hline\end{array}$$