On March 1, Pimlico Corporation (a U. S.-based company) expects to order merchandise from a supplier in Sweden in three months. On March 1, when the spot rate is $0.44 per Swedish krona, Pimlico enters into a forward contract to purchase 695,000 Swedish kroner at a three-month forward rate of $0.460. At the end of three months, when the spot rate is $0.455 per Swedish krona, Pimlico orders and receives the merchandise, paying 695,000 kroner. What amount does Pimlico report in net income as a result of this cash flow hedge of a forecasted transaction
Answers (1)
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “On March 1, Pimlico Corporation (a U. S.-based company) expects to order merchandise from a supplier in Sweden in three months. On March 1, ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
Max Leonard, vice president of Marketing for Dysk Computer, Inc., must decide whether to introduce a midpriced version of the firm's DC6900 personal computer product line - the DC6900-X.
Answers (1)
Husker Corporation reports current E&P of negative $200,000 in year 1 and accumulated E&P at the beginning of the year of $300,000. Husker distributed $200,000 to its sole shareholder on December 31, year 1.
Answers (1)
Michigan State University is an example of which type of institution of higher education A-Special focus school B-Single sex school C-For profit school D-Public school
Answers (1)
Jameson works for fishy-mart corporation, a chain of superstores that sells large quantities of seafood. his job is to locate future sites for fishy-mart stores.
Answers (1)
Which type of salesperson would routinely be involved in an industrial straight rebuy situation?
Answers (1)
New Questions in Business
The American Cancer Society has been sending letters soliciting donations for years. When they added pre-printed address labels personalized as a gift to the receiver of the solicitation, donation levels went up by 30%.
Answers (2)
Nuclear Company's costs were over budget by $25,200. The company is divided into Left and Right regions. The Left Region's costs were under budget by $1,500. Determine the amount that the Right Region's costs were over or under budget.
Answers (1)
What is the role of the Office of the Comptroller of the Currency? 1. it adjusts the interest rates for loans. 2. it ensures all financial institutions follow banking laws. 3. It protects up to $250,000 of customer deposits. 4.
Answers (1)
Within the domain of logistics management, the customer service concept implies that firms should:
Answers (1)
Which firm provides the better signal when trying to decide which of the firms' stock to buy? A. Firm A, which uses an independent accounting firm for auditing. B. Firm B, which uses an internal group for auditing. C.
Answers (1)