AB 209 Unit 10 Assignment Profit and Loss

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Assume monthly sales are $280,000 October, $290,000 November, and $345,000 December Assume Inventory purchases are $60,000 Oct, $60,000 Nov, and $70,000 Dec Assume the owner gets a cash disbursement in Oct of 45,000, Nov of 51,000, and Dec of 52,000 Assume wages and salaries are 48% of gross monthly sales Assume rent is $9500 a month Assume utilities are 5% of gross monthly Assume a tax prepayment of $16,000 in October Assume bank interest on the note is $15000/month Assume a depreciation expense of $15,000 in December  Answer the questions: Does the firm need to borrow money at the end of the year to meet expenses? Why or why not?

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