Answer:
d. transaction loss; $3,695
Explanation:
Calculations:
Today ¥110.58 can be exchanged by $1
<h3>US firm to pay today = 100,000,000/110.58 = 904322.66</h3>
US firm had to pay $904322.66 today.
US firm chooses to pay three months after the transaction and do not uses any hedging technique.
Three months later on settlement date ¥110.13 can be exchanged by $1, so less ¥ can be exchanged now than three months ago ( ¥110.58). Now US firm would incur transaction loss. Translation loss/gain occurs when balance sheet of a firm is converted from one currency to another.
<h3>US firm to pay 3 months later = 100000000/110.13 = 908017.79</h3>
US firm to pay $904322.66 three months later
<h3>Transaction gain/loss = $904322.66 - $908017.79 = -$3695.13 </h3>
So US firm incurs loss of $3695.13, rounded off to $3695
Answer:
$8,775
Explanation:
Forty Winks Corporation
March Night stand + April Night Stand × direct labour hours × direct labour rate.
$1,600+ $1,100 =$2,700
$2,700×0.25 direct labor hours =$675
$675×labor rate of $ 13.00=$8,775
The total combined direct labor cost that Forty Winks Corporation should budget in March and April is $8,775
Answer:
From the given information, we can infer that Lorenzo has decided to give Maya a warning.
Explanation:
The warning is the statement which indicates any unpleasant situation which may arise if not taken any precaution. Although it is unpleasant to hear and to contemplate, it gives sufficient time for any situation to be covered up within the time. In the above case, Lorenzo decided to warn Maya about her activity. By doing this he would be able to draw Maya's attention towards her behavior.
Answer:
$105,075
Explanation:
The computation of the operating income is shown below:
Sales (4 × 69,500) $278,000
Less:Variable costs (0.95 × 69,500 + 5% × 278,000) $79,925
Contribution margin $198,075
Less: fixed cost (13,000 + 80,000) $93,000
Net operating income $105,075
We simply deduct the variable cost and the fixed cost from the sales to arrive at the net operating income
Answer:
The balance in stockholders' equity at the end of year 2 is $31,000
Explanation:
For computing the balance in stockholder equity at the end of year 2, first, we have to compute the balance for year 1 which is shown below:
Year 1 equity balance = Issue of stock + Net income
= $20,000 + $5,000
= $25,000
Now, year 2 balance would equal to
= Year 1 balance + Net income - Dividend paid
= $25,000 + $10,000 - $4,000
= $31,000
Hence, the balance in stockholders' equity at the end of year 2 is $31,000