Reproduced below are selected financial data at the end of Year 6 and forecasts for the end of Year 7 for AlMasa Company:
|Account||Year 6||Year 7 (Forecast)|
Additional forecast estimates for Year 7:
Net Income $12,000
Cost of sales 55% of sales forecast
Days’ sales in receivables 60 days
Assuming all expenses are paid in cash when incurred and that cost of sales is exclusive of depreciation, forecast the ending cash balance for year 7. If AlMasa Company wishes to maintain a minimum cash balance of $60,000, must the company borrow?