If the opening cash balance at the beginning of June is $27,500, total cash inflows for the month are $38,000 and total cash outflows are $98,000 the opening cash balance at the beginning of July is:

Select one:

a.

$67,500 (surplus)

b.

$12,500 (surplus)

c.

$32,500 (deficit)

d.

cannot be calculated

e.

$87,500 (deficit)