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Marsha Corporation expects $2,000,000 in cash receipts this year and has $2,500,000 budgeted in cash disbursements. Marsha begins the year with $500,000 in cash and

Marsha Corporation expects $2,000,000 in cash receipts this year and has $2,500,000 budgeted in cash disbursements. Marsha begins the year with $500,000 in cash and has a policy of keeping 10% of next years sales in the ending cash balance for the year. Next years sales are budgeted at $7,500,000. Will Marsha Corporations have to borrow money and if so, how much?

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