The Following Information Was Taken from Hurlbert Company Cash Budget

Multiple Choice

The following information was taken from Hurlbert Company cash budget for the month June $\begin{array}{lr}\text { Beginning cash balance } & \$ 46,000 \\\text { Cash receipts } & 62,000 \\\text { Cash disbursements } & 78,000\end{array}$ If the company has a policy of maintaining end of the month cash balance of $40,000, the amount the company would have to borrow is

A) $24,000.
B) $10,000.
C) $16,000.
D) $0.