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Lady bird [3.3K]
3 years ago
8

A company headquartered in Vancouver, British Columbia, is building a pipeline in Russia. The invoice amount is due in 90 days a

nd is denominated at 28 million rubles. The Canadian dollar is trading for 28 rubles currently and 29 rubles 90 days forward.
Which of the following strategies will the Canadian firm most likely pursue in the 90-day forward market to hedge the transaction exposure inherent in this situation?

A. Purchase 28,000,000 rubles.
B. Purchase 29,000,000 rubles.
C. Sell 28,000,000 rubles.
D. Sell 29,000,000 rubles.
Business
1 answer:
Alinara [238K]3 years ago
5 0

Answer:

C. Sell 28,000,000 rubles

Explanation:

By doing so, the company will <u>immediately receive</u> the amount equivalent in Canadian Dollars by selling 28 million rubles in forward and after 90 days when the invoice amount (28 million rubbles) is received from building the pipeline, will be used to netting of the forward contract.

In this way, company can hedge the currency exposure, and reduce the risk which can be generated from currency volatility.

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John Williams, manager of Phoenix Entertainment, wants to compute the variable overhead efficiency variance for the year. He has
jenyasd209 [6]

Answer:

$10,125 Favorable

Actual quantity of the cost-allocation base used - Actual quantity of the cost-allocation base that should have been used to produce the actual output) × Budgeted variable overhead cost per unit of the cost-allocation base

Explanation:

Variable overhead spending variance = Actual Spending - budgeted Spending based on actual quantity

Variable overhead spending variance = (Actual Input x Actual rate) - ( Actual input x Budgeted rate)

Variable overhead spending variance = (10,125 x $29) - ( 10,125 x $30)

Variable overhead spending variance = $293,625 - $303,750

Variable overhead spending variance = $10,125 Favorable

Variable overhead spending variance is

Actual quantity of the cost-allocation base used - Actual quantity of the cost-allocation base that should have been used to produce the actual output) × Budgeted variable overhead cost per unit of the cost-allocation base

4 0
3 years ago
Which of the following is the first step in self-leadership? Establishing client relationships Practicing gainsharing Personal g
Fittoniya [83]

Self -leadership is the process of influencing the one's own behavior and also the behavior of the other people around them.The First step of self Leadership is<u> Personal Goal setting</u>

Explanation:

Self leadership is normally defined as the  process in which a individual is able to control his  own behavior and at the same time he leads and influence others to follow them . These  individuals  use several behavioral strategies to empower and lead others people

<u>The Five element of Self Leadership are </u>:-

  1. Personal Goal Setting
  2. Constructive Thought Patterns
  3.  Designing Natural Rewards
  4.  Self-monitoring
  5. Self-reinforcement

<u>Self-leadership Strategies includes</u>

  1. <u>Personal Goal Setting</u>
  2. <u>Designing Natural Rewards</u>
  3. <u>Constructive Thought Patterns</u>
5 0
3 years ago
When using the indirect method to determine cash flows from operating activities, an increase in prepaid expenses should be repo
Andrews [41]

Answer:

b. A deduction from net income in determining cash flows from operating activities.

Explanation:

An increase in prepaid expenses is deducted from Net Income. The reason behind it very simple and no rocket science is there. Lets take Insurance as a prepaid expense. You Paid in-advance for Insurance, it increase your current asset that is Prepaid Insurance BUT at the same time cash went out of the Business.

I hope I made it clear to you. If you still have any queries, feel free to ask me.

Thanks!

8 0
3 years ago
The following information is taken from the records of Erie Corp.(in thousands) for the year ended on December 31: 2019 2018 Sal
den301095 [7]

Answer:

<u>Favourable Changes:</u>

Sales

Gross Profit

Operating Income

Interest Expense

Net Income

<u>Unfavourable Changes:</u>

Cost Of Sales  

Selling Expenses  

General Expenses

Other Revenue

Income Taxes

Explanation:

Observe Movement from 2018 results to 2019 results

                                        Erie Corp

                   Vertical Analysis of Income Statement

                                                                2019                    2018

Sales                                                        1,397                    1,122

Less Cost Of Sales                                   935                      814

Gross Profit                                               462                      308

<u>Less Operating Expenses</u>

Selling Expenses                                      154                       121

General Expenses                                     88                        77

Operating Income                                   220                       110

<u>Less Non- Operating Expenses</u>

Other Revenue                                            4                          7

Interest Expense                                         2                          9

Income Taxes                                           134                        66

Net Income                                                88                        42

8 0
3 years ago
A client is unconscious and experiencing increasing intracranial pressure. What type of diuretic will the client most likely be
ElenaW [278]

Answer:

osmotic diuretic

Explanation:

Osmotic diuretic -

It refers to the type of diuretic , which resists the absorption of the sodium and water , is referred to as osmotic diuretic .

In simple terms , it refers to the condition of increased urination , where additional water comes out along with urine .

The reason for Osmotic diuresis can be -

Higher level of sugars in blood .

As the client is facing the issue of increased intracranial pressure , where the amount of fluid around the brain is reduced  which is a fatal condition , so in order to avoid this condition , Osmotic diuretic is given , so that the excess fluid can comes out with urine .

Hence , the correct term is osmotic diuretic .

7 0
3 years ago
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