Hilliard Company Budgeted the Following Transactions for April Year 2

Hilliard Company budgeted the following transactions for April Year 2: $\begin{array}{llr} \text { Sales (75\% collected in month of sale) }&\$200,000\\ \text {Cash operating expenses } &105,000\\ \text { Cash purchases of investments } &75,000\\ \text { cash payment of debt} &15,000\\ \text { Depreciation on operating assets} &12,000\\\end{array}$
The beginning cash balance was $50,000. The company desires to have a $25,000 ending cash balance. The surplus (or shortage) of cash before considering any borrowings in April would be:

A) $40,000 surplus.
B) $40,000 shortage.
C) $20,000 shortage.
D) There is no cash surplus or shortage.