• April 26, 2022
  • David Marks
  • 0

AB 209 Unit 10 Assignment Profit and Loss Updated

 

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 sales
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?

David Marks

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