The Following Information Was Taken from Mitchell Company Cash Budget

Multiple Choice

The following information was taken from Mitchell Company cash budget for the month of July: $\begin{array}{lr}\text { Beginning cash balance } & \$ 125,000 \\\text { Cash receipts } & 120,000 \\\text { Cash disbursements } & 170,000\end{array}$ If the company has a policy of maintaining an end of the month cash balance of $125,000, the amount the company would have to borrow is

A) $50,000.
B) $25,000.
C) $75,000.
D) $36,000.