the question is just relating to the fact that i have a negative cash balance at the beginning of the year, but i have to stick to the policy that, i must have sufficient inventory on hand at the end of each month, for 6 months.
-So do i have to go and borrow, or i have to sale the item i already purchase it for resale?

[QUOTE=Leonard Mantana;3108284]the question is just relating to the fact that i have a negative cash balance at the beginning of the year, but i have to stick to the policy that, i must have sufficient inventory on hand at the end of each month, for 6 months.
-So do i have to go and borrow, or i have to sale the item i already purchase it for resale?[Management Accounting]

You should be selling your inventory for positive cash flow. Also you have to purchase inventory to so you have inventory to resell. If you have a negative cash flow you may have to borrow money from a lending institution so you can purchase inventory.

Sounds like you have to do a purchases budget and/or a cash flow budget.