Network Company Pty Ltd Made the Following Estimates for the Three

Multiple Choice

Network Company Pty Ltd made the following estimates for the three months ending 31 March.This is Network Company's first period of operation and their starting cash balance is $5 000.
Estimates:
$\begin{array}{lr}\text { Cash receipts from sales } & \$ 600000 \\ \text { Cash payments for expenses } & 260000 \\ \text { Purchase of fixed assets (\$10 000 will not be paid until April) } & 40000 \\ \text { Depreciation of fixed assets } & 8000 \\ \text { Repayment of bank loan } & 50000\end{array}$
What is the estimated cash balance at 31 March?

A) Surplus of $252 000.
B) Surplus of $265 000.
C) Surplus of $272 000.
D) Surplus of $255 000.