Robert Company sold inventory to an Australian company for 50,000 Australian dollars on April 1, 20X0 with settlement to be in 60 days. On the same date, Robert entered into a 60-day forward contract to sell 50,000 Australian dollars at a forward rate of $1.164 in order to manage its exposed foreign currency receivable. The forward contract is not designated as a hedge. The spot rates were as follows:
April 1 1 Australian dollar = $1.167
May 31 1 Australian dollar = $1.16
Based on the preceding information, had Robert not used the forward exchange contract, what would have been the foreign currency transaction gain or loss for the year?
a. Gain of $200
b. Gain of $150
c. Loss of $350
d. Loss of $200
Answers (1)
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Robert Company sold inventory to an Australian company for 50,000 Australian dollars on April 1, 20X0 with settlement to be in 60 days. On ...” 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
Because of multiple physical injuries and emotional concerns, a hospitalized client is at high risk to develop a stress ulcer (Curling). Which of these is evidence of a stress ulcer?
Answers (1)
On January 16, Tree Co. paid $60,000 in property taxes on its factory for the current calendar year. On April 2, Tree paid $240,000 for unanticipated major repairs to its factory equipment.
Answers (1)
An organization process that results in increasing the size of working memory and involves combining smaller units of information to make larger ones is an activity commonly called. a. retrievingb. storingc. chunkingd. rehearsing
Answers (2)
What will you call an employee who prioritizes her own goals rather than the team's goal?
Answers (1)
Which of the following can be part of analyzing a problem? gathering and examining pertinent information evaluating the information for relevancy and truth redefining the problem all of the above
Answers (1)
New Questions in Business
Assuming that a is positive, theories of short-run aggregate supply are expressed mathematically as a. quantity of output supplied = natural rate of output + a (actual price level - expected price level). b.
Answers (1)
Conducting market research to understand which consumers are most likely to want, need, and buy a firm's products would take place during which step of designing and executing an advertising campaign? a. Convey the message b.
Answers (1)
What is the relationship between a non-callable, option-free fixed rate bond's price and its yield?
Answers (1)
Fev and Company has a projected balance sheet that includes the following accounts. Cash $? Marketable securities 228,000 Accounts receivable 860,000 Inventory 490,000 Non-current assets, net 2,030,000 Current liabilities 486,000 Total liabilities
Answers (1)
On December 31, the end of the first year of operations, Frankenreiter Inc. manufactured 25,600 units and sold 24,000 units. The following income statement was prepared, based on the variable costing concept: Frankenreiter Inc.
Answers (1)