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

$$10,000$

$$0$

$$20,000$

$$5,000$