An entrepreneur starts a company by investing $300,000 of equity to fund working capital. The entrepreneur makes the following forecast assumptions:
First-year sales $500,000
Annual sales growth 8%
Net profit margin 30%
Working capital / Sales 80%
Based only on this information, the company's cash balance at the end of the second year is closest to:
A) $32,000
B) $50,000
C) $180,000