Denise owns Sail Away, Chartered Tours. Her business is a sole proprietorship. Denise opened her business on February 1 of the current year and deposited $20,000. Her gross receipts were $69,500 this year. She borrowed $15,000 from the bank, and she is not required to make a payment until January of next year. She purchased $25,000 of equipment and recorded depreciation expense of $5,000. Her total expenses were $35,000, and she withdrew $4,000. She did not have any accounts payable or receivable at the end of the year. What is the correct cash balance on December 31?

a) $89,500 b) $70,500 c) $40,500 d) $45,500