1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
suter [353]
3 years ago
5

Curtis purchased inventory on December 1, 2020. Payment of 250,000 stickles was to be made in sixty days. Also on December 1, Cu

rtis signed a contract to purchase §250,000 in sixty days. The spot rate was §1 = 0.33682, and the 60-day forward rate was §1 = $0.36842. On December 31, the spot rate was §1 = 0.32438 and the 30-day forward rate was §1 = 0.36386.
At what amount should the Forward Contract account be recorded on December 1?
Business
1 answer:
jek_recluse [69]3 years ago
3 0

Answer: $0

Explanation:

Forward contracts get their value from the cost and on December 1, there was no cost to Curtis as he Curtis had just signed the contract.

This means that the amount that should be recorded for the Forward Contract should be $0. Even though the contract is valued at $0, it will still need to be credited against the amount to be received to at least recognize that a forward contract was entered into.

You might be interested in
Suppose Ford Motor Company issues a five year bond with a face value of $5,000 that pays an annual coupon payment of $150.
blondinia [14]

Answer:

interest rate =  15%

value of the bond will decrease

Explanation:

given data

face value = $5,000

time = 5 year

annual coupon payment = $150

solution

we get here interest rate on the borrowed funds that will be as

interest rate = \frac{annual\ coupon}{face\ value/time}  × 100

put here value we get

interest rate =  \frac{150}{\frac{5000}{5} }  × 100

interest rate =  15%

and

when bond issued at interest rate =  3 %

but market interest rate 4%

so seller will reduce price of bond less than the face value

because we will look for atleast 4% payout when bond matures

so value of the bond will decrease

6 0
3 years ago
The heart of the internal records system is the ________ because customers favor firms that can promise timely delivery. A. sale
Brut [27]

Answer:

C. order-to-payment cycle

Explanation:

Order to cash, also known as the or the quote-to-cash cycle, refers to the process of receiving and completing a sale  the beginning with the placement of the order and ending with the payment.

I hope you find this information useful and interetsing! Good luck!

3 0
3 years ago
What explanations have economists offered for why firms​ don't raise prices when doing so would seem to increase​ profits? Firms
motikmotik

Answer: To keep the customer base

Explanation: The consumers find it unfair when the firms increase their prices continuously even though there was an increase in demand from the last increase in price.

Although, Customers do not mind when the prices are increased due to an increase in cost to the supplier. Therefore,unnecessary increase in price might result in loss of popularity of the product and further the loss of customer base.

That's the reason why firms do not increase their prices even though it will increase their profits.

8 0
3 years ago
Anthony owns a landscaping business that has 4 employees. His company is able to earn revenue of​ $600 per day. He knows that if
svetoff [14.1K]

Answer:

What is the question?

Explanation:

I suppose that is if it is profitable to hire the new worker, according to microeconomics this decision must be based in something called marginal income and must be compare with the marginal cost because they can increase the income but not the profit depending of the cost of the new worker.

4 0
3 years ago
This is a good question to ask during an interview A) How many vacation days do I get? B) What kind of products or services do y
jeka94

Answer:

C) How many hours of training will I need?

3 0
3 years ago
Other questions:
  • What is an interest rate usually shown as?
    9·1 answer
  • Television is a popular advertising medium among companies selling products and services that are consumed by mass markets becau
    9·1 answer
  • In the short run, prices may rise faster than costs. This chapter discusses why this might happen. Suppose that labor and manage
    11·1 answer
  • BUSINE
    6·1 answer
  • An offer to enter into a contract can be terminated by
    11·1 answer
  • Waterway Company uses a periodic inventory system. For April, when the company sold 450 units, the following information is avai
    6·1 answer
  • For her first speech, Rebekah plans to explain her interest in dance beginning with her childhood and continuing through her day
    6·1 answer
  • A firm has just paid its annual dividend of $5.64 a share. Thereafter the dividend is expected to increase at a rate of 2% a yea
    6·1 answer
  • Cedric is planning to major in business management and would like to work for an international company someday. What program mig
    8·2 answers
  • Select ALL the correct answers. What was an effect of tax legislation signed by President Trump in 2017
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!