Xon Company Is Planning to Purchase Fixed Assets at a Cost

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.