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Yuliya22 [10]
2 years ago
8

Assuming that Brandt entered into a forward contract to sell 10 million South Korean won on December 1, 2020, as a fair value he

dge of a foreign currency receivable, what is the net impact on its net income in 2020 resulting from a fluctuation in the value of the won
Business
1 answer:
romanna [79]2 years ago
7 0

The net impact on its net income in 2020 resulting from a fluctuation in the value of the won is : $250 decrease in net income.

First step is to calculate the Discount on forward contract

Discount on forward contract=[($0.0035 − $0.0034) × 10 million

Discount on forward contract=$0.0001 × 10 million

Discount on forward contract= $1,000

Second step is to amortized the Discount on forward contract

Amortization of discount on forward contract=$1,000 / 4 months

Amortization of discount on forward contract=$250 per month

Based on the above calculation foreign exchange loss of the amount of $250 will be recognized on December 31, 2020.

Therefore the net impact on its net income in 2020 resulting from a fluctuation in the value of the won is a decrease of $250.

Learn more here:<em> brainly.com/question/19353936</em>

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Answer and explanation:

Regression coefficients portrait the changes in variables after one unit has changed keeping the rest of the predictors of the model the same. While the <em>simple linear regression</em> is predicted from one variable, the <em>multiple regression</em> is predicted for more than one of them.

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?fournotts printing inc. manufactures and sells photocopiers, printers, and scanners to various corporate offices. this is an ex
vovangra [49]
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8 0
3 years ago
T
Rufina [12.5K]

Answer:

The risk of recession will most likely cause the company's shareholders to demand a higher return.

Explanation:

If the company loses some customers, more might be attracted to the company. However, if the prices drop, the price might stay low and cause the financial value of stock to drop. Once the stock drops, the entire company loses money along with their stock, which is determined by their profit and loss.

8 0
3 years ago
The average fixed cost curve a. always declines with increased levels of output. b. always rises with increased levels of output
Zolol [24]

Answer: a. always declines with increased levels of output.

Explanation: the average fixed cost curve graphically illustrates or shows the relation between average fixed cost a firm incurs in the short-run production of a good or service, and the quantity produced. The average fixed cost curve always declines with increases in the level of output resulting in a negatively sloped curve. This is to say that the average fixed cost is relatively high at smaller quantities of output, which then declines as the level of production increases--the more output increases, the more average fixed cost declines. Why this occurs is that a given fixed cost is spread over an increasingly larger quantity of output and as such, firms can profitably charge a lower price with increased output.

7 0
3 years ago
At the start of its fiscal year, a company anticipated producing 300,000 units throughout the year. The annual budgeted manufact
scoray [572]

Answer:

The correct answer to the following question is $36,000.

Explanation:

Given information  -

Units anticipated to be produced - 300,000 units

Variable cost - $150,000

Fixed cost - $600,000

Beginning inventory - 5000 units

Ending inventory  - 7000 units

Income under absorption costing - $40,000

Now under the absorption costing, rate of fixed overhead cost per unit -

Fixed cost / Number of units produced

= $600,000 / 300,000

= $2

In April ( under absorption costing ), the amount of fixed manufacturing overhead cost that was still embedded in ending inventory but were not expense -  

Fixed overhead rate per unit x number of units produced but not sold

= $2 x 2000 ( 7000 units - 5000 units )

= $4000

So when we calculate the operating cost under variable costing this fixed overhead cost wold be subtracted from total income -

$40,000 - $4000

= $36,000 .

6 0
3 years ago
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