Cash disbursements: Payment of rent Salaries paid to employees for services rendered during the year Travel and entertainment Advertising 80,000 140,00 30,000 15,000 160,00 40,000 35,000 In addition, you learn that the company incurred advertising costs of $25,000 in year 2, owed the advertising agency $5,000 at the end of year 1, and there were no liabilities at the end of year 3. Also, there were no anticipated bad debts on receivables, and the rent payment was for a two- year period, year 2 and year 3.