Part A-2
Impact on 2017 income:
Sales |
59500 |
Foreign Exchange Gain |
1700 |
Loss on Forward Contract |
(1700) |
Premium revenue |
425 |
Total |
$59925 |
Part A-3
Impact on 2018 income:
Foreign Exchange Gain (17000*(3.75-3.60)) |
2550 |
Loss on Forward Contract |
(2550) |
Premium revenue (17000*(3.575-3.50)*2/3) |
850 |
Total |
850 |
Part A-4
Impact on net income over both periods: $59925 + $850 = $60775; equal to cash inflow (17000*3.575 = $60775)
this is the question unable to figure out?? Brandlin Company of Anaheim, California, purchases materials from...
this is the queston, a-2, a-3, a-4 cant figure out Brandlin Company of Anaheim, California, purchases materials from a foreign supplier on December 1, 2017 with payment of 17000 korunas to be made on March 1, 2018. The materials are consumed immediately and recognized as cost of goods sold at the date of purchase. On December 1, 2017 Brandlin enters into a forward contract to purchase 17.000 korunas on March 1, 2018. Relevant exchange rates for the koruna on various...
questions i cant figure out?? Brandlin Company of Anaheim, California, purchases materials from a foreign supplier on December 1, 2017 with payment of 17.000 korunas to be made on March 1, 2018. The materials are consumed immediately and recognized as cost of goods sold at the date of purchase. On December 1, 2017, Brandlin enters into a forward contract to purchase 17.000 korunas on March 1, 2018. Relevant exchange rates for the koruna on various dates are as follows: Date...
Brandlin Company of Anaheim, California, purchases materials from a foreign supplier on December 1, 2017, with payment of 10,000 korunas to be made on March 1, 2018. The materials are consumed immediately and recognized as cost of goods sold at the date of purchase. On December 1, 2017, Brandlin enters into a forward contract to purchase 10,000 korunas on March 1, 2018. Relevant exchange rates for the koruna on various dates are as follows: Date December 1, 2017 December 31,...
Please help! Brandlin Company of Anaheim, California, purchases materials from a foreign supplier on December 1, 2017, with payment of 30,000 korunas to be made on March 1, 2018. The materials are consumed immediately and recognized as cost of goods sold at the date of purchase. On December 1, 2017, Brandlin enters into a forward contract to purchase 30,000 korunas on March 1, 2018. Relevant exchange rates for the koruna on various dates are as follows: Date December 1, 2017...
Brandlin Company of Anaheim, California, purchases materials from a foreign supplier on December 1, 2017, with payment of 16,000 korunas to be made on March 1, 2018. The materials are consumed immediately and recognized as cost of goods sold at the date of purchase. On December 1, 2017, Brandlin enters into a forward contract to purchase 16,000 korunas on March 1, 2018. Relevant exchange rates for the koruna on various dates are as follows: Date Spot Rate Forward Rate (to...
Company of Anaheim, California, purchases materials from a foreign supplier on December 1, 2017, with payment of 31,000 korunas to be made on March 1, 2018. The materials are consumed immediately and recognized as cost of goods sold at the date of purchase. On December 1, 2017, Brandlin enters into a forward contract to purchase 31,000 korunas on March 1, 2018. Relevant exchange rates for the koruna on various dates are as follows: Date Spot Rate Forward Rate (to March...
please show work Brandlin Company of Anaheim, California, purchases materials from a foreign supplier on December 1, 2017, with payment of 17000 korunas to be made on March 1, 2018. The materials are consumed immediately and recognized as cost of goods sold at the date of purchase. On December 1, 2017, Brandlin enters into a forward contract to purchase 17,000 korunas on March 1, 2018. Relevant exchange rates for the koruna on various dates are as follows: Spot Rate Date...
31. Brandlin Company of Anaheim, California, sells parts to a foreign customer on December 1, 2017, with payment of 16,000 korunas to be received on March 1, 2018. Brandlin enters into a forward contract on December 1, 2017, to sell 16,000 korunas on March 1, 2018. Relevant exchange rates for the koruna on various dates are as follows: Date Spot Rate December 1, 2017 December 31, 2017 March 1, 2018 $2.70 2.80 2.95 Forward Rate (to March 1, 2018) $2.775...
Brandlin Company of Anaheim, California, sells parts to a foreign customer on December 1, 2017, with payment of 25,000 korunas to be received on March 1, 2018. Brandlin enters into a forward contract on December 1, 2017, to sell 25,000 korunas on March 1, 2018. Relevant exchange rates for the koruna on various dates are as follows: Date December 1, 2017 December 31, 2017 March 1, 2018 Spot Rate $ 4.30 4.40 4.55 Forward Rate (to March 1, 2018) $...
Brandlin Company of Anaheim, California, sells parts to a foreign customer on December 1, 2017 with payment of 23,000 korunas to be received on March 1, 2018. Brandlin enters into a forward contract on December 1, 2017, to sell 23,000 korunas on March 1, 2018 Relevant exchange rates for the koruna on various dates are as follows: Spot Rate $ 4.10 Date December 1, 2017 December 31, 2017 March 1, 2018 Fonard Rate (to March 1, 2018) $ 4.175 4.389...