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

October November December Gross revenue Inventory Purch (cost of Goods Sold) Net Sales Cash Disbursement to owner Wages & Salaries Rental Exp Utilities Tax Prepayment Interest on Bank Note Depreciation Total Expenses Profit

Answer the questions: Does the firm need to borrow money at the end of the year to meet expenses? Why or why not?