Hilliard Company Budgeted the Following Transactions for April Year 2

Hilliard Company budgeted the following transactions for April Year 2: $$\begin{array} {| l | r | } \hline \text { Sales (75\% collected in month of sale) } & \$ 200,000 \\\hline \text { Cash Operating Expenses } & 105,000 \\\hline \text { Cash Purchases of Investments } & 75,000 \\\hline \text { Cash Payment of Debt } & 15,000 \\\hline \text { Depreciation on Operating Assets } & 12,000 \\\hline\end{array}$$ 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 financing activities (that is, borrowings or repayments) during in April would be:

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