Hilliard Company budgeted the following transactions for April Year 2:

Sales (75% collected in month of sale). $200,000

Cash operating expenses 105,000

Cash purchases of investments 75,000

Cash payment of debt 15,000

Depreciation on operating assets 12,000

The beginning cash balance was $50,000. The company desires to have a $25,000 ending cash balance. The surplus (or shortage) of cash before considering any borrowings in April would be:

A.) $20,000 shortage

B.) $40,000 surplus

C.) There is no cash surplus or shortage.

D.) $40,000 shortage