Rabato Corporation acquired merchandise on account from a foreign supplier on November 1, 2011, for 60,000 LCU (local currency units). It paid the foreign currency account payable on January 15, 2012. The following exchange rates for 1 LCU are known:
November 1, 2011 | $0.345 |
December 31, 2011 | 0.333 |
January 15, 2012 | 0.359 |
a. How does the fluctuation in exchange rates affect Rabato's 2011 income statement?
b. How does the fluctuation in exchange rates affect Rabato's 2012 income statement?
We need at least 10 more requests to produce the solution.
0 / 10 have requested this problem solution
The more requests, the faster the answer.