Laurey Inc. is working on its cash budget for May. The budgeted beginning cash balance is $40,000. Budgeted cash receipts total $121,000 and budgeted cash disbursements total $115,000. The desired ending cash balance is $61,500. To attain its desired ending cash balance for May, the company needs to borrow:

a. $15,500

b. $61,500

c. $0

d. $107,500