Xon Company is planning to purchase fixed assets at a cost of $200,000. The planned delivery date is 1 February 2015. A deposit of $10,000 is to be paid on 1/11/14. The amount that will appear in the cash budget for November 2014 is:

Question

Quizplus · Accepted Answer

The cash budget for November will only include the deposit payment of $10,000, therefore the outflow will be $10,000. The remaining $190,000 will be paid in February 2015, which is outside of the budgeted period.

Xon Company Is Planning to Purchase Fixed Assets at a Cost