HK Pty Ltd is planning to purchase equipment costing $45,000. On 17 January, HK Pty Ltd paid a deposit of $25,000. The planned delivery date is 11 April with final settlement on this date. The amount that will appear in the cash budget for the quarter ending 31 March is:

Select one:

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

b. outflow of $30,000.

c. outflow of $25,000.

d. outflow of $45,000.

Notes