For October, a business has total cash inflow of £20,000. October expenses are £12,000 of which £3,500 is paid next month and includes £400 depreciation. If the opening cash balance for October was £5,000, what is October’s closing cash balance?

1. £13,000

2. No answer is correct

3. £25,000

4. £16,900

5. £17,700