Xon Company Is Planning to Purchase Fixed Assets at a Cost

question 12

Multiple Choice

Xon Company is planning to purchase fixed assets at a cost of $200,000. The planned delivery date is 1st February 2018. A deposit of $20,000 is to be paid on 1/11/17. The amount that will appear in the cash budget for November 2017 is:

• A)$190,000 outflow.
• B)$200,000 outflow.
• C)$20,000 outflow.
• D)$20,000 inflow.