Assume that ABC Coffee has the following totals on its balance sheet: Assets = $100,000 Liabilities = $40,000 ABC Coffee now borrows $50,000 from the bank.

Discussion Questions: 1. How will the totals for assets and liabilities be affected by the loan? Explain. 2. Is the borrowing a good idea for the business? Why or why not? 3. How might the business use the $50,000? 4. What other information would be useful to have before deciding to take out the loan?