Sharpe Ltd Made These Estimates for the Six Months Ending

Multiple Choice

Sharpe Ltd made these estimates for the six months ending 31 December.
Estimates:
$\begin{array}{lr}\text { Cash receipts from services provided } & \$ 60000 \\ \text { Cash payments for expenses, including rent paid in advance }(\$ 3000) & 43000 \\ \text { Purchase of equipment }(\$ 1500 \text { will not be paid until February) } & 20000 \\ \text { Depreciation of equipment } & 4000 \\ \text { Borrowings } & 15000\end{array}$
The cash balance at 1 July is $13 000.The estimated cash balance at 31 December is:

A) surplus of $13 500.
B) surplus of $26 500.
C) surplus of $11 000.
D) deficit of $15 000.