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egoroff_w [7]
3 years ago
11

On November 15, 20X3, Chow Inc., a U.S. company, ordered merchandise FOB shipping point from a German company for €200,000. The

merchandise was shipped and invoiced on December 10, 20X3. Chow paid the invoice on January 10, 20X4. The spot rates for euros on the respective dates were
Business
1 answer:
MArishka [77]3 years ago
8 0

Answer:

$4,000 gain

Explanation:

Some information was missing:

the spot rates for euros were:

  • November 15, 20X3 $0.4955  per €1
  • December 10, 20X3 $0.4875  per €1
  • December 31, 20X3  $0.4675  per €1
  • January 10, 20X4 $0.4475  per €1

In Chow's December 31, 20X3, income statement, the foreign exchange gain is ?

the goods costed €200,000 x 0.4875 = $97,500 on December 10, 20x3

the goods costed €200,000 x 0.4675 = $93,500 on December 31, 20x3

Since the goods were sold FOB shipping point, we have to use the shipping date (December 10) to calculate the original price. By December 31, the price in US dollars had decreased by $4,000 resulting in a foreign exchange gain.

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Because opportunity cost is the value of something else you might have done with that time or money that you expended there.
hope this helps!
6 0
3 years ago
A review of the personal selling process indicates that selling is:
MArishka [77]

Answer:

d. a matter of establishing relationships.

Explanation:

Selling involves creating a relationship with the prospect.

The sales relationship has the short-term value you get from the customer.

There is also the long-term life-time value of the customer to be considered.

Sales based on referrals are the easiest to obtain and give best value.

Good relationships give rise to refrrals.

7 0
4 years ago
8) How can using a credit card affect your credit score in a good way? In a bad way?
gregori [183]

Answer:

Explanation:

Good way: using your credit card and paying off the balance each month and on time can increase your credit score. Also, having a large credit limit affects the credit positively

Bad way: paying your balances late or not at all is bad for your credit.

5 0
3 years ago
The Crunchy Potato Chip Company sells chips in boxes with a net weight of 846 grams per box . Each box contains ten individual 3
Alinara [238K]

Answer:

0.8

Explanation:

Given:

Number of chips contained in each box = 10

Weight of each packet of chips = 3 ounce

Average weight per box = 853 grams

Upper specification limit of the weight = 846 + 12 grams = 858 grams

Lower specification limit of the weight = 846 - 12 grams = 834 grams

Standard deviation, σ = 5 grams

Now,

Capability index = \frac{\textup{Upper limit - Lower limit}}{6\sigma}

or

Capability index = \frac{858 - 834}{6\times5}

or

Capability index = 0.8

7 0
3 years ago
The following are selected 2020 transactions of Astin Corporation. Sept. 1 Purchased inventory from Encino Company on account fo
masya89 [10]

Answer:

inventory  50,000 debit

    accounts payable    50,000 credit

--to record purchase of goods--

accounts payable 50,000 debit

      notes payables      50,000 credit

--to record teh issued promissory note to setle the account--

cash                                  50,000 debit

discount on note payable 4,000 debit

  notes payable                            54,000 credit

--to record the discounted note--

Explanation:

a)  we record the purchase as always.

b) we are trading a liability for another. We do not receive for the note.

c) we discount on the note and we are goind to declare the interest expense at maturity or year-end against this discount.

5 0
4 years ago
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