1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Kobotan [32]
3 years ago
5

On December 12, year 1, Imp Co. entered into three forward exchange contracts, each to purchase 100,000 euros in ninety days. Th

e relevant exchange rates are as follows: Spot rate Forward rate (for March 12, year 2) November 30, year 1 $.87 $.89 December 12, year 1 $.88 .90 December 31, year 1 $.92 .93 At December 31, year 1, what amount of foreign currency transaction loss should Imp include in income from the revaluation of the Accounts Payable of 100,000 euros incurred as a result of the purchase of inventory at November 30, year 1, payable in March year 2?
Business
1 answer:
timama [110]3 years ago
6 0

Answer:

40.000

Explanation:

I think your approach is not clear at all, but your question is.

So if you have bought merchandise worth 100,000 euros but your records are in other currencies, you must take the exchange rate at the time of the operation, this is $ 0.89. You will register

Inventorty 890.0000

accounts paylable     890,000

At the close of the fiscal year your liabilities must be valued at the official exchange rate, in this case it is $ 0.93

then your foreign currency debt increases, but not your inventory, the other account that is used is a negative result for this rate change

loss exchange rate    40,000

accounts paylable                     40.000

in the valuation of liabilities the seller exchange rate is used

You might be interested in
Which of the following is NOT true about licensing? a. The license fee could be based on a percentage of final sales revenue of
nordsb [41]

Answer:

The option that is not true about licencing is E) It involves slightly more risk to the licensee than licensor.

Explanation:

Licensing is a business arrangement in which one company gives another company permission to manufacture its product for a specified payment. Licensing generally involves allowing another company to use patents, trademarks, copyrights, designs, and other intellectual in exchange for a percentage of revenue or a fee.

Usually, It is the licensor that that bears more risk. For instance, unscrupulous licensees have been known to manufacture licensed products and sell them under different brand names in order to tamper with the royalty payable to the licensor.

4 0
3 years ago
Cruz company had revenues of 80175 and expenses of 50000 for the year its assets at the beginning of the year were 400000 at the
kirza4 [7]

The return on assets for Cruz Company with a total revenue of $80,175 and total expenses of $50,000, given average assets of $425,000 is 7.1%.

Return on Assets = Net Income/Average Assets x 100

= $30,175/$425,000 x 100

= 7.1%

  • The return on assets indicates the profitability of Cruz Company relative to its assets.  It is expressed as a percentage by dividing the Net Income with the Average Assets, then multiplied by 100.

Data and Calculations:

Revenue =       $80,175

Expenses =    $50,000

Net income = $30,175

Assets:

Beginning balance = $400,000

Ending balance = $450,000

Average assets = $425,000 ($400,000 + $450,000)/2

Thus, the return on assets equals 7.1% for the year.

Learn more about the return on assets at brainly.com/question/20114227

8 0
3 years ago
__________ is most closely related to the division of labor within an organization.
Olin [163]
Specialization is most closely related to the division of labor within an organization.
Differentiation in an organization is created through a division of labor and job specialization. The two idea are closely related. Specialization refers to the specific task or work within a production process.
3 0
4 years ago
Suppose Scott has a budget of $56 that he spends on movies (Q1) and roller skating (Q2). The price of movie tickets recently inc
8090 [49]

Answer:

1.6 Q1 + 0.875 Q2 = $56

Explanation:

Budget constraint equation represents the total budget allocation to different activities under consideration.

old Budget Constraint

Q1 + Q2 = $56

New Budget Constraint

(Q1)*8/5 + (Q2)*7/8 = $56

(Q1)*1.6 + (Q2)*7/8 = $56

(Q1)*1.6 + (Q2)*0.875 = $56

1.6 Q1 + 0.875 Q2 = $56

So best answer made based on data available.

5 0
3 years ago
Juanita is training for a triathlon, a timed race that combines swimming, biking, and running.
VikaD [51]

Answer:

Juanita's trainning dilema:

B:People face trade-offs

Icestorm:

A:Markets allocate goods effectively.

Explanation:

Any hour on swimming trainning is one less for bike or running.

Also an hour runnings is one less for swimming or running

an bike hours negate the change for swimming or running.

This is the concept of opportunity cost. chose something is also chose not to do anything else.

When there is need of a certain good, batteries in this case, the market (which is the sum of all people willing to do business) will allocate resource when needed. As the demand for batteries and flashlights increased, the stores chose to purchase these instead of other to replenish the stock and make a stand to the increased demand.

8 0
4 years ago
Other questions:
  • Which is an example of a withholding you might see on your pay stub?
    7·2 answers
  • You own a $58,600 portfolio comprised of four stocks. the values of stocks a, b, and c are $11,200, $17,400, and $20,400, respec
    10·1 answer
  • A drawback of aquaculture in net pens is ______________.
    11·1 answer
  • A production possibilities curve will shift outward or to the right for all of the following reasons EXCEPT an increase in the u
    8·1 answer
  • A homeowner refused to accept a full price contract offered by a buyer with children. He told his broker that he only wishes to
    8·1 answer
  • Andy has been working at Aerial Corp. for a long time. He feels he is hard working and that he deserves a pay hike. He seeks a m
    5·2 answers
  • MVJ Corp., a market research firm, borrows $2 million from trimitium bank. while negotiating with the bank, the firm signs a pro
    15·1 answer
  • State whether the following statement is true or false: Too many slow moving, high value goods into
    11·1 answer
  • If you were able to do any job in the world, if it required schooling you succeeded, and nothing was stopping you from having th
    6·1 answer
  • Kristy's health insurance policy benefits max out at $25,000 per year. What is
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!