Radical Co.Balance SheetCash $ 50 Accounts payable $100Inventory $150 Notes paya

Radical Co.Balance SheetCash $ 50 Accounts payable $100Inventory $150 Notes payable 100Fixed assets $600 Long-term debt 350Equity 250Total assets $800 Total liabilities & equity $800Radical Co.Income statementSales $800Costs 600EBT $200Taxes (34%) 68Net income $1321. Suppose that current assets costs and accounts payablemaintain a constant ratio to sales. The firm retains 40% ofearnings.