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Compute the amount that will appear in the cash budget

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QUESTION - T. Bailey Ltd is planning to purchase equipment costing $45,000. The planned delivery date is 11 April with settlement on that date on 17 January. T. Bailey Ltd paid a deposit of $15,000. Compute the amount that will appear in the cash budget for the quarter ending 31 March?

a. out?ow of $15,000

b. out?ow of $45,000

c. out?ow of $30,000

d. $0. No cash flows are recorded until settlement date.

Reference no: EM132489293

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