Question :

We have constructed a proforma balance sheet for our company. The proforma shows that we will need $1.2 million in funding. However, the proforma also shows that we will have $1.1 million in cash and short-term securities. The CFO then tells us that we need to begin discussions with the bank for some additional external funding above the $100,000 level. Why does the CFO make this assessment?

Please explain in detail and in at least two paragraphs