The Following Information Was Taken from Mitchell Company's Cash Budget

Multiple Choice

The following information was taken from Mitchell Company's cash budget for the month of July: $$\begin{array} { l r } \text { Beginning cash balance } & \$ 125,000 \\\text { Cash receipts } & 120,000 \\\text { Cash disbursements } & 170,000\end{array}$$ If the company has a policy of maintaining an end of the month cash balance of $125000 the amount the company would have to borrow is

A) $50000.
B) $25000.
C) $75000.
D) $36000.