Mr$.$ Miyagi is very excited because sales for his nursery and plant company are expected to double from $$600,000$ to $$1,200,000$ next year. Mr$.$ Miyagi notes that net assets $($Assets $$ Liabilities$)$ will remain at $40$ percent of sales. His firm will enjoy an $12$ percent return on total sales. He will start the year with $$200,000$ in the bank and is bragging about the Jaguar and luxury townhouse he will buy.

Compute his likely cash balance or deficit for the end of the year. Start with beginning cash and subtract the asset buildup $($equal to $40$ percent of the sales increase$)$ and add in profit.