Question

At the beginning of 20X2, Skeena Industries Ltd. obtained a four- year loan of US$ 400,000 from a bank in New York City. At the time of the loan, the US dollar was worth C$ 1.10. At the end of 20X2, the exchange rate had changed to US$ 1.00 C$ 1.14. By the end of 20X3, the US dollar was worth C$ 1.20.
During 20X3, Skeena Industries Ltd. sold goods to a French customer for € 800,000. At the time of the sale, the euro was worth C$ 1.50. The customer paid one- fourth of the amount due later in the year, when the euro was worth C$ 1.41. By the end of 20X3, the euro had declined in value to C$ 1.35.

Required
Determine the impact of the transactions described above on Skeena Industries’ financial statements for the year ended December 31, 20X3.



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  • CreatedMarch 13, 2015
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