Cisco Enterprises reported total assets at December 31 totaling $68,500. The following selected amounts were taken from the company's financial statements for its year ending December 31:

Retained earnings, beginning $38,000

Sales $170,000

Accounts receivable 3,500

Common stock 10,000

Notes payable 8,000

Net income 12,500

How much is the company's shareholders' equity as of December 31?

A. $48,000 B. $22,500 C. $28,000 D. $60,500