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Natali5045456 [20]
3 years ago
11

Merchant Company had the following foreign currency transactions: On November 1, 20X6, Merchant sold goods to a company located

in Munich, Germany. The receivable was to be settled in European euros on February 1, 20X7, with the receipt of €190,000 by Merchant Company. On November 1, 20X6, Merchant purchased machine parts from a company located in Berlin, Germany. Merchant is to pay €95,000 on February 1, 20X7. The direct exchange rates are as follows: November 1, 20X6 €1 = $ 0.60 December 31, 20X6 €1 = $ 0.62 February 1, 20X7 €1 = $ 0.58 Required: Record the T-accounts for the following transactions (Record the transactions in the given order.) The November 1, 20X6, export transaction (sale). The November 1, 20X6, import transaction (purchase). The December 31, 20X6, year-end adjustment required of the foreign currency–denominated receivable of €190,000. The December 31, 20X6, year-end adjustment required of the foreign currency–denominated payable of €95,000. The February 1, 20X7, adjusting entry to determine the U.S. dollar–equivalent value of the foreign currency receivable on that date. The February 1, 20X7, adjusting entry to determine the U.S. dollar–equivalent value of the foreign currency payable on that date. The February 1, 20X7, settlement of the foreign currency receivable. The February 1, 20X7, settlement of the foreign currency payable.

Business
1 answer:
vazorg [7]3 years ago
6 0

Answer

The answer and procedures of the exercise are attached in the images below.

Explanation  

Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a 2 sheets with the formulas indications.  

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Consider two markets: the market for cat food and the market for dog food. The initial equilibrium for both markets is the same,
Yakvenalex [24]

Answer:

Elasticity of supply for dog food = 0.95

Explanation:

From the question, we have:

New quantity supplied of dog food = 107.0

Old quantity supplied of dog food = Initial equilibrium quantity = 21.0

New price = $8.75

Old price = Initial equilibrium price = $1.50

Generally, the formula for calculating the elasticity of supply is as

follows:

Elasticity of supply = Percentage change in quantity supplied / Percentage change in price ................ (1)

Where, based on the midpoint formula, we have:

Percentage change in quantity supplied of dog food = {(New quantity supplied of dog food - Old quantity supplied of dog food) / [(New quantity supplied of dog food + Old quantity supplied of dog food) / 2]} * 100 = {(107.0 - 21.0) / [(107.0 + 21.0) / 2]} * 100 = 134.375%

Percentage change in price = {(New price - Old price) / [(New price + Old price) / 2]} * 100 = {(8.75 - 1.50) / [(8.75 + 1.50) / 2]} * 100 = 141.463414634146%

Substituting the values into equation (1), we have:

Elasticity of supply for dog food = 134.375% / 141.463414634146% = 0.94989224137931

Approximated to 2 decimal places, we have:

Elasticity of supply for dog food = 0.95

6 0
2 years ago
The decisions you make with your money is called what?
ziro4ka [17]

Well there are many decisions you can make with your money such as use it for a good cause or use it for reckless things. You could give to charity or just do nothing with it. It really depends

5 0
3 years ago
Read 2 more answers
When the economy is operating at point C, the Federal Reserve may decrease the discount rate to
brilliants [131]

Answer:

D ; increase growth

Explanation:

The discount rate is one of the tools that the Federal Reserve uses to direct monetary policy.  Banks are subject to minimum reserves requirements. If a bank falls below this minimum, it can borrow from the banks with a surplus,  or borrow from the federal reserve. If it borrows from the Fed, the interest rate that applies is the discount rate. The discount rate is always higher than the fed fund rate; hence, banks use it as a last resort.

The discount rate and the fed rate have similar effects on the economy.  The Fed uses the discount rate to regulate the money supply in the country. When the growth in slow, the fed will reduce the discount rate.  A low discount rate means the cost of borrowing money goes down. The impact is that individuals and businesses will afford to borrow money for consumption and investment.

Increased levels of investments and consumption will mean a higher GDP, which is growth.

7 0
3 years ago
You want your portfolio beta to be 0.90. Currently, your portfolio consists of $4,000 invested in stock A with a beta of 1.47 an
Tatiana [17]

Answer:

31.47%

Explanation:

Total investment = 4000 + 3000 +9000 = $16,000

% of investment in A = 4000/16000 = 25%

% of investment in B = 3000/16000 = 18.75%

% of investment in Asset beta and risk-free asset = 100% - 25% -18.75% = 56.25%

Let the % of investment in asset with beta of 1.74 is A, % of investment in risk free asset is B.

We have the following simultaneous equations:

0.9 = (0.25 x 1.47) + (0.1875 x 0.54) + (A x 1.74) + (B x 0)

A+B = 56.25%

From the first equation, we get A = 24.78%

--> B = 56.25% - 24.78% = 31.47%

*** Note: Portfolio beta is the weighted sum of individual asset betas, according to the proportions of the investments in the portfolio

*** Note: Beta of risk free asset is 0

6 0
3 years ago
Calculate gross profit for the following situation: National Storage Company had sales of $1,000,000, sales discounts of $2,500,
Pie

Answer:

$475,500

Explanation:

Sales is $1,000The discountscount is $2500

Sales return and allowances are $15,000

The cost of goods sold is $525,000

Therefore the gross profit can be calculated as follows

= 1,000,000-2,500-15,000-525,000

= 457,500

Hence the gross profit is $475,500

3 0
3 years ago
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