is this true: Time 1: Sales = 500 and Cash 50 =+ long-term debt 100 + capital stock 100 + opening retained earnings 0 + net income 50 + current liabilities 100 - inventory 100 - fixed assets 200 Time 2: Sales = 750 and Cash 125 =+ long-term debt 100 + capital stock 100 + opening retained earnings 50 + net income 75 + current liabilities 100 - inventory 100 - fixed assets 200. Profits (net income) are the source of cash in Time 2

Answer rating: 100% (QA)

Answer The statement is False Heres a breakdown of why Time 1 Analysis The equation shows a cash bal... View the full answer