If total assets are $75000 and total liabilities are $25000 the amount of owner's equity is $25000

Spindler, Inc. (a U.S.-based company), imports surfboards from a supplier in Brazil and sells them in the United States. Purchas

gladu [14]

Answer:

a. The effect on reported income in 2020 is a foreign exchange gain of $6,400.

b-1. The effecton reported income in 2020 is a foreign exchange loss of -$12,800.

b-1. The effect on reported income in 2021 is a foreign exchange gain of $9,600.

c-1. The effect on reported income in 2020 is a foreign exchange loss of -$6,400.

c-1. The effect on reported income in 2021 is a foreign exchange gain of $9,600.

Explanation:

a. Assume that Spindler acquired the surfboards on September 1, 2020, and made payment on December 1, 2020. What is the effect of the exchange rate fluctuations on reported income in 2020?

Since the U.S. Dollar per Brazilian Real on 1-Sep-20 is higher than the U.S. Dollar per Brazilian Real on 31-Dec-20, the effect of the exchange rate fluctuations on reported income in 2020 is a foreign exchange gain calculated as follows:

Foreign exchange gain on 31-Dec-20 = Value of surfboards in Brazilian real * (U.S. Dollar per Brazilian Real on 1-Sep-20 - U.S. Dollar per Brazilian Real on 31-Dec-20) = BRL640,000.00 * ($0.24 - $0.23) = $6,400

b. Assume that Spindler acquired the surfboards on December 1, 2020, and made payment on March 1, 2021. What is the effect of the exchange rate fluctuations on reported income in 2020 and 2021?

b-1. Since the U.S. Dollar per Brazilian Real on 1-Dec-20 is lower than the U.S. Dollar per Brazilian Real on 31-Dec-20, the effect of the exchange rate fluctuations on reported income in 2020 is a foreign exchange loss calculated as follows:

Foreign exchange loss on 31-Dec-20 = Value of surfboards in Brazilian real * (U.S. Dollar per Brazilian Real on 1-De-20 - U.S. Dollar per Brazilian Real on 31-Dec-20) = BRL640,000.00 * ($0.23 - $0.25) = -$12,800

b-2. Since the U.S. Dollar per Brazilian Real on 31-Dec-20 is higher than the U.S. Dollar per Brazilian Real on 1-Mar-21, the effect of the exchange rate fluctuations on reported income in 2021 is a foreign exchange gain calculated as follows:

Foreign exchange gain on 31-Mar-21 = Value of surfboards in Brazilian real * (U.S. Dollar per Brazilian Real on 1-Dec-20 - U.S. Dollar per Brazilian Real on 1-Mar-21) = BRL640,000.00 * ($0.25 - $0.235) = $9,600

c. Assume that Spindler acquired the surfboards on September 1, 2020, and made payment on March 1, 2021. What is the effect of the exchange rate fluctuations on reported income in 2020 and in 2021?

c-1. Since the U.S. Dollar per Brazilian Real on 1-Sep-20 is lower than the U.S. Dollar per Brazilian Real on 31-Dec-20, the effect of the exchange rate fluctuations on reported income in 2020 is a foreign exchange loss calculated as follows:

Foreign exchange loss on 31-Dec-20 = Value of surfboards in Brazilian real * (U.S. Dollar per Brazilian Real on 1-Sep-20 - U.S. Dollar per Brazilian Real on 31-Dec-20) = BRL640,000.00 * ($0.24 - $0.25) = -$6,400

c-2. Since the U.S. Dollar per Brazilian Real on 31-Dec-20 is higher than the U.S. Dollar per Brazilian Real on 1-Mar-21, the effect of the exchange rate fluctuations on reported income in 2021 is a foreign exchange gain calculated as follows:

Foreign exchange gain on 31-Mar-21 = Value of surfboards in Brazilian real * (U.S. Dollar per Brazilian Real on 1-Dec-20 - U.S. Dollar per Brazilian Real on 1-Mar-21) = BRL640,000.00 * ($0.25 - $0.235) = $9,600

6 0

3 years ago

An ATM card is used on January 24 to withdraw cash. What is the balance after this transaction? $158.53 $246.53 $15.00 $40.00

lianna [129]

The answer to this is $15.00

5 0

3 years ago

Read 2 more answers

Suppose a worker is offered a wage of $8 per hour, plus a fixed payment of $100 per day, and she can use 24 hours per day. what

Allushta [10]

Suppose a worker is offered a wage of $8 per hour, plus a fixed payment of $100 per day, and she can use 24 hours per day. The Market rate of substituion between leisure & income is $8 per day.

Because the budget line FE describes the opportunities available to a worker who has $100 of nonlabor income per week, faces a market wage rate of $10 per hour, and has 110 hours of nonsleeping time to allocate between work and leisure activities This means that the person will choose the level of goods and leisure that lead to the highest possible level of the utility index given the limitations imposed by the budget constraint.

Leisure is the time when you are free from work or other duties and can relax.

Limitations the act of controlling the size or extent of something the act of limiting something.

Budget is a spending plan based on income and expenses.

To know more about the Leisure here

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3 0

2 years ago

Ed bought $2,000 in stock shares one week before the stock price dropped $10.00. If he had waited for the price setback, he coul

Zanzabum

Answer:

He bought 40 shares.

Explanation:

<em>Step 1: Determine the initial stock price</em>

Use the expression below to determine the total initial stock price as shown;

T=S×s

where;

T=total initial stock price

S=initial stock price per share

s=number of shares

In our case;

T=$2,000

S=x

s=unknown

replacing;

2,000=x×s

s=2,000/x

<em>Step 2: Determine the final stock price</em>

Use the expression below;

F=f×s2

where;

F=final stock price=$2,000

f=final stock price per stock=(x-10)

s2=final number of shares bought=(2,000/x)+10

replacing;

2,000=(x-10){(2,000/x)+10)

2,000=x(2,000/x)+(10 x)-10(2,000/x)-100

(2,000=2,000+10 x-20,000/x-100)x

2,000 x=2,000 x+10 x²-20,000-100 x

2,000 x-2000 x=10 x²-100 x-20,000

10 x²-100 x-20,000=0

solving quadratically;

x=[100±√{100²-(4×10×-20,000)}]/(2×10)

x={100±√(10,000+800,000)}/20

x=(100±900)/20

x=1,000/20=50

Initial stock price=$50

Number of shares bought=2,000/x=2,000/50=40

He bought 40 shares.

4 0

3 years ago

On July 1, 2014, Agincourt Inc. made two sales.

sesenic [268]

Answer:

Explanation:

Date Account title and Explanation Debit Credit

1st july-14 Notes receivable $1,393,591

Discount on notes receivable ($1,393,591 - S600,100 - $317,900) $475,591

Land $600,100

Gain on disposal of land ` ($918,000 - $600,100) $317,900 ` (To record sale of land)

1-Jul-14

Notes receivable $404,300

Service revenue $404,300

` (to record service revenue)

5 0

3 years ago