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coldgirl [10]
3 years ago
15

On December 20, 2017, Butanta Company (a U.S. company headquartered in Miami, Florida) sold parts to a foreign customer at a pri

ce of 105,000 ostras. Payment is received on January 10, 2018. Currency exchange rates for 1 ostra are as follows:December 20, 2017 $ 1.20December 31, 2017 1.17January 10, 2018 1.13a. How does the fluctuation in exchange rates affect Butanta's 2017 income statement?b. How does the fluctuation in exchange rates affect Butanta's 2018 income statement?
Business
1 answer:
rjkz [21]3 years ago
4 0

Answer:

The appropriate solution is:

(a) $3150

(b) $4200

Explanation:

According to the question,

(a)

The exchange loss will be:

= (1.20-1.17)\times 105000

= 0.03\times 105000

= 3150 ($)

(b)

The exchange loss will be:

= (1.17-1.13)\times 105000

= 0.04\times 105000

= 4200 ($)

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Answer: The options are given below:

A) harvest for cash flow.

B) divest for cash flow.

C) improve customer loyalty.

D) enter related new market segments.

E) enter unrelated new market segments.

The correct option is D.

Explanation: Delta Motors is in the business of making automobiles. Their market segment will include people who use vehicles.

Therefore, in developing an affordable electric car, Delta Motors will still be in the business of servicing their current market segment, which is, people who use vehicles.

This segment will be new, but still related to the business that Delta Motors is involved in, because they will still be producing cars.

However, if we assume that Delta Motors now want to go into the business of making planes, they will service a totally unrelated new market segment, because making planes and making cars are two entirely different kinds of business.

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Event Dimension BP stock prices falling 25% during the first month after the oil spill. <u>ECONOMIC. </u>

The Economic dimension of the environment deals with production in the economy which means that it deals with business entities and the financial system. Dimension BP stock price falling therefore falls under her.

Using deep-se submersibles to take pictures of the oil leak a mile below the surface of the water. <u>TECHNOLOGICAL. </u>

The Technological dimension of the environment refers to anything related to the use of technology and using deep-sea submersibles to take pictures of the leak below the surface of the water will definitely fall under technology.

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Joy is taking out a car loan which she will pay back with interest. Which option will require her to pay the lowest amount in in
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CSM Machine Shop is considering a four-year project to improve its production efficiency. Buying a new machine press for $375,00
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Answer:

the company should buy and install the press because the NPV of the project is positive ($73,133.75)

Explanation:

the MACRS 5 year depreciation:

  1. $375,000 x 20% = $75,000
  2. $375,000 x 32% = $120,000
  3. $375,000 x 19.2% = $72,000
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the NPV of the project = -$375,000 + $109,320/1.11 + $133,200/1.11² + $116,880/1.11³ + $107,088/1.11⁴ + $144,132/1.11⁵ = $73,133.75

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