Assume a merchandising company provides the following information from its master budget for the month of May:

Cash balance, May 1	$	20,000
Cash collections from customers	$	80,000
Cash disbursements for merchandise purchases	$	35,000
Cash disbursements for selling and administrative expenses	$	40,000
Depreciation included in the selling and administrative expense budget	$	5,000

If the company wishes to maintain a minimum cash balance of $30,000 at the end of every month, then its borrowings at the beginning of May will equal?

Multiple Choice

• $5,000

• $0

• $10,000

• $20,000