AB 209 STUDY Education Terms/ab209study.com AB 209 STUDY Education Terms/ab209study.com | Page 16

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? ==============================================