Have a Managerial Accounting problem:
ABC Company budgeted the following transactions from May 2003

Sales (60% collected in month of sale) $180,000
Cash Operating Expenses $ 105,000
Cash Purchases of Capital Investments $ 50,000
Cash repayment on Note payable $ 40,000
Depreciation on equipment $ 25,000

There was $35,000 beginning cash balance. Sales for April were $75,000 and 40% expected to be collected in the month following the sales. The company desires to have a $20,000 and the cash balance. Determine the amount of cash overage or shortage.

4 possible answers
$42,000 shaortage
$23,000 overage
$22,000 shortage
$43,000 overage

I need help with which process to use to find the answers. A little lost.

Cash in

Sales from April 75000*.4 = 30000
Sales from May 180000*.6 = 108000

Total in 138000

Cash out
Operating expenses -105000
Capital spend -50000
Repay notes payable -40000

Total out -195000

Beginning balance 35000
Cash in 138000
Cash out -195000

Projected ending balance -22000

Desired cash balance 20000

Projected shortage -42000