On November 3, the spot price for cotton was $0.81/lb., and the February futures price was...
On November 3, the spot price for cotton was $0.81/lb., and the
February futures price was $0.83/lb. On November 3, Levi Strauss
sold 200 futures contracts on the commodity exchange at $0.83/lb.
for delivery in February. Each contract was for 25,000 lbs. Levi
Strauss designated these contracts as a cash flow hedge of 5
million lbs. of current inventory which it expected to sell in
February. The average spot of this inventory when purchased was
$0.58/lb. Levi Strauss properly documented the hedge and employed
hedge accounting. On November 30, the company’s fiscal year end,
the February commodity exchange futures price was $0.85/lb.
In the November 30 balance sheet, Levi Strauss should record the
futures contracts as a
- 100,000 asset
- $100,000 liability
- $4,250,000 liability
- $4,250,000 asset
Show the work please
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On November 3, the spot price for cotton was $0.81/lb., and the
February futures price was...
Today is in February. The spot price for gold is $1260.74 and the June futures price...
Today is in February. The spot price for gold is $1260.74 and the June futures price is $1275.08. (All prices are per Troy ounce.) A jewelry manufacturer hedges its May purchase of gold with twenty (20) June gold futures contracts. In May, the company buys gold in the spot market for $1395.67 and closes out its futures position at a futures price of $1365.9. What is the basis in May for the hedge?
FIGURE 14.1 Futures Prices (November 9, 2015) Futures Contracts I WSJ.com/commodities Metal & Petroleum Futures Contract...
FIGURE 14.1 Futures Prices (November 9, 2015) Futures Contracts I WSJ.com/commodities Metal & Petroleum Futures Contract Open Open High hi lo Low Settle Chg interest 2,109 90,935 211 247,319 Copper-High (CMX) -25,000 Ibs.; $ per lb. Nov 2.2380 2.2395 2.2305 2.2300 -0.0115 Dec 2.2350 2.2510 2.2260 2.2300 -0.0120 Gold (CMX)-100 troy oz.; $ per troy oz. Nov 1088.60 1088.60 1088.60 1087.90 0.30 Dec 1089.10 1094.90 1087.40 1088.10 0.40 Feb'16 1089,90 1095.50 1088.60 1089.10 0.40 April 1091.00 1095.60 1089.50 1089.90 0.40...
Suppose you sell six August 2017 gold futures contracts on this day, at the last price...
Suppose you sell six August 2017 gold futures contracts on this day, at the last price of the day. Use Table 23.1 a. What will your profit or loss be if gold prices turn out to be $1,249.70 per ounce at expiration? (Do not round intermediate calculations. Enter your answer as a positive value rounded to the nearest whole number, e.g., 32.) b. What will your profit or loss be if gold prices are $1,235.90 per ounce at expiration? (Do...
JOHNSON & JOHNSON AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS (Dollars and Shares in Millions Except Per...
JOHNSON & JOHNSON AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS (Dollars and Shares in Millions Except Per Share Amounts) (Note 1)* 2016 71,890 21,789 50.101 20,067 9.143 29 Sales to customers Cost of products sold Gross profit Selling, marketing and administrative expenses Research and development expense In-process research and development Interest income Interest expense, net of portion capitalized (Note 4) Other (income) expense, net Restructuring (Note 22) Eamings before provision for taxes on income Provision for taxes on income (Note 8)...
JOHNSON & JOHNSON AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS (Dollars and Shares in Millions Except Per...
JOHNSON & JOHNSON AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS (Dollars and Shares in Millions Except Per Share Amounts) (Note 1)* 2016 71,890 21,789 50.101 20,067 9.143 29 Sales to customers Cost of products sold Gross profit Selling, marketing and administrative expenses Research and development expense In-process research and development Interest income Interest expense, net of portion capitalized (Note 4) Other (income) expense, net Restructuring (Note 22) Eamings before provision for taxes on income Provision for taxes on income (Note 8)...
JOHNSON & JOHNSON AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS (Dollars and Shares in Millions Except Per...
JOHNSON & JOHNSON AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS (Dollars and Shares in Millions Except Per Share Amounts) (Note 1)* 2016 71,890 21,789 50.101 20,067 9.143 29 Sales to customers Cost of products sold Gross profit Selling, marketing and administrative expenses Research and development expense In-process research and development Interest income Interest expense, net of portion capitalized (Note 4) Other (income) expense, net Restructuring (Note 22) Eamings before provision for taxes on income Provision for taxes on income (Note 8)...
JOHNSON & JOHNSON AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS (Dollars and Shares in Millions Except Per...
JOHNSON & JOHNSON AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS (Dollars and Shares in Millions Except Per Share Amounts) (Note 1)* 2016 71,890 21,789 50.101 20,067 9.143 29 Sales to customers Cost of products sold Gross profit Selling, marketing and administrative expenses Research and development expense In-process research and development Interest income Interest expense, net of portion capitalized (Note 4) Other (income) expense, net Restructuring (Note 22) Eamings before provision for taxes on income Provision for taxes on income (Note 8)...
FIGURE 14.1 Futures Prices (November 9, 2015) Futures Contracts I WSJ.com/commodities Metal & Petroleum Futures Contract Open Open High hi lo Low Settle Chg interest 2,109 90,935 211 247,319 Copper-High (CMX) -25,000 Ibs.; $ per lb. Nov 2.2380 2.2395 2.2305 2.2300 -0.0115 Dec 2.2350 2.2510 2.2260 2.2300 -0.0120 Gold (CMX)-100 troy oz.; $ per troy oz. Nov 1088.60 1088.60 1088.60 1087.90 0.30 Dec 1089.10 1094.90 1087.40 1088.10 0.40 Feb'16 1089,90 1095.50 1088.60 1089.10 0.40 April 1091.00 1095.60 1089.50 1089.90 0.40...
Suppose you sell six August 2017 gold futures contracts on this day, at the last price of the day. Use Table 23.1 a. What will your profit or loss be if gold prices turn out to be $1,249.70 per ounce at expiration? (Do not round intermediate calculations. Enter your answer as a positive value rounded to the nearest whole number, e.g., 32.) b. What will your profit or loss be if gold prices are $1,235.90 per ounce at expiration? (Do...
JOHNSON & JOHNSON AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS (Dollars and Shares in Millions Except Per Share Amounts) (Note 1)* 2016 71,890 21,789 50.101 20,067 9.143 29 Sales to customers Cost of products sold Gross profit Selling, marketing and administrative expenses Research and development expense In-process research and development Interest income Interest expense, net of portion capitalized (Note 4) Other (income) expense, net Restructuring (Note 22) Eamings before provision for taxes on income Provision for taxes on income (Note 8)...
JOHNSON & JOHNSON AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS (Dollars and Shares in Millions Except Per Share Amounts) (Note 1)* 2016 71,890 21,789 50.101 20,067 9.143 29 Sales to customers Cost of products sold Gross profit Selling, marketing and administrative expenses Research and development expense In-process research and development Interest income Interest expense, net of portion capitalized (Note 4) Other (income) expense, net Restructuring (Note 22) Eamings before provision for taxes on income Provision for taxes on income (Note 8)...
JOHNSON & JOHNSON AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS (Dollars and Shares in Millions Except Per Share Amounts) (Note 1)* 2016 71,890 21,789 50.101 20,067 9.143 29 Sales to customers Cost of products sold Gross profit Selling, marketing and administrative expenses Research and development expense In-process research and development Interest income Interest expense, net of portion capitalized (Note 4) Other (income) expense, net Restructuring (Note 22) Eamings before provision for taxes on income Provision for taxes on income (Note 8)...
JOHNSON & JOHNSON AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS (Dollars and Shares in Millions Except Per Share Amounts) (Note 1)* 2016 71,890 21,789 50.101 20,067 9.143 29 Sales to customers Cost of products sold Gross profit Selling, marketing and administrative expenses Research and development expense In-process research and development Interest income Interest expense, net of portion capitalized (Note 4) Other (income) expense, net Restructuring (Note 22) Eamings before provision for taxes on income Provision for taxes on income (Note 8)...
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