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
marishachu [46]
3 years ago
10

A year ago, MC Hammer Company had inventory in Britain valued at 240,000 pounds. The exchange rate for dollars to pounds was 1£

= 2 U.S. dollars. This year the exchange rate is 1£ = 1.82 U.S. dollars. The inventory in Britain is still valued at 240,000 pounds. What is the gain or loss in inventory value in U.S. dollars as a result of the change in exchange rates? (Hint: Gain/loss is the difference between total value of last period and current period
Business
1 answer:
lys-0071 [83]3 years ago
5 0

Answer:

Gain= 132,000 - 120,000= 12,000 dollars

Explanation:

Giving the following information:

A year ago, MC Hammer Company had inventory in Britain valued at 240,000 pounds. The exchange rate for dollars to pounds was 1£ = 2 U.S. dollars. This year the exchange rate is 1£ = 1.82 U.S. dollars. The inventory in Britain is still valued at 240,000 pounds.

Year 1= 1/2= 0.5 exchange rate

Inventory year 1= 240,000*0.5= 120,000 dollars

Year 2= 1/1.82= 0.55 exchange rate

Inventory year 2= 120,000*0.55= 132,000 dollars

You might be interested in
The Chandler Group wants to set up a private cemetery business. According to the CFO, Barry M. Deep, business is "looking up". A
Tems11 [23]

Answer: 6.49%

Explanation:

The constant rate of growth where the company would break even will be calculated thus:

Initial investment = Net cash inflow / (14% - g)

759000 = 57,000/(0.14 - g)

where g = growth rate

759000 = 57,000/(0.14 - g)

Cross multiply

759000(0.14 - g) = 57000

106260 - 759000g = 57000

759000g = 106260 - 57000

759000g = 49260

g = 49260/759000.

g = 0.0649

g = 6.49%

6 0
2 years ago
Based on your knowledge of international trade organizations, answer the following question.
IgorC [24]

Answer:

b. The global financial crisis of 2008 threatened the EU by exposing differences in the economic strength of its member states.

d. The EU introduced the euro, a common currency that facilitates travel, trade, and investment.

Explanation:

Trade of factors and finished goods increased exponentially over the couse of the years after implementing the Euro

This makes possible a lot of new project and investment as it was a strong currency with virtually no risk of devaluation thus, very reliable. In the past, European currency will tend into depreciation and inflation. This doesn't occur with the Euro

Also whe nthe 2008 sub-prime crisis hit we manage to discover the great difference between the central power and the other nations such as ireland, spain, greece and portugal This were called (PIGS)

However is important to notice how Ireland has manage to leave those problem behind with a serious of reform after the crisis.

3 0
3 years ago
What effect would a tax increase have on income
trasher [3.6K]
The Answer is D. It would not affect gross income. Gross income is the total amount of income you gain before expenses are taken away.
7 0
3 years ago
Read 2 more answers
When making scrap or rework decisions, management should consider: (Check all that apply.)a. Revenue from selling defective unit
vlabodo [156]

Answer:

The correct answer is all of the above

Explanation:

Scrap or the rework costs are the costs which is incurred in order to repair the   items that are defective. And the decision to rework or scrap an item or product, ground on the benefits or advantage of the incremental costs.

If the reworked units generate or yield greater advantage or benefit rather than the selling them as scrap, then the decision to rework will be considered.

And if the decision of rework is taken, then the management should consider the incremental costs, revenue or profit from selling the defective units as scarp and the lost profit on selling and making the new units while the rework is performed.

3 0
3 years ago
Read 2 more answers
Why can deadweight loss occur when a price is below the equilibrium even when some consumers benefit from it?
soldi70 [24.7K]

When a shortage occurs, some consumers are fortunate enough to benefit from a lower price if they purchase the good or service before the price increase occurs.

7 0
3 years ago
Other questions:
  • 6. Name at least five things Pete and Jessica need to look out for when making stock investments. Before making any stock​ inves
    10·1 answer
  • When using the two-second rule, if you reach the mark before you finish counting "one thousand two", you __________ A. are not f
    5·1 answer
  • Why is infrastructure a public good
    12·1 answer
  • Sean’s mother had to make an emergency purchase of a new tire because her tire went flat while she was traveling to the store. S
    13·1 answer
  • What is the difference between global trade and domestic trade?
    10·2 answers
  • Kirgan, Inc., manufactures a product with the following costs: Per Unit Per Year Direct materials $ 26.50 Direct labor $ 15.50 V
    9·1 answer
  • A new client in the medical–surgical unit complains of difficulty sleeping and is scheduled for an exploratory laparotomy in the
    9·1 answer
  • Brown Corporation has 500,000 shares of 9%, $40 par value cumulative preferred stock authorized, 100,000 shares issued, and 80,0
    9·1 answer
  • Based on the substitution effect, which example reflects how people would likely respond to a rise in gas prices
    10·1 answer
  • Kokomochi is considering the launch of an advertising campaign for its latest dessert product, the Mini Mochi Munch. Kokomochi p
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!