On December 20 2011 Butanta Company a U S company headquartered
On December 20, 2011, Butanta Company (a U.S. company headquartered in Miami, Florida) sold parts to a foreign customer at a price of 50,000 ostras. Payment is received on January 10, 2012. Currency exchange rates for 1 ostra are as follows:
December 20, 2011.. $1.05
December 31, 2011 .. 1.02
January 10, 2012 ... 0.98

a. How does the fluctuation in exchange rates affect Butanta’s 2011 income statement?
b. How does the fluctuation in exchange rates affect Butanta’s 2012 income statement?

Membership TRY NOW
  • Access to 800,000+ Textbook Solutions
  • Ask any question from 24/7 available
    Tutors
  • Live Video Consultation with Tutors
  • 50,000+ Answers by Tutors
OR
Relevant Tutors available to help