Consider the following direct exchange rates for the U.S. Dollar and the Polish Zloty: April 15, 2024 Spot Rate 0.232 Forward rate for July 15, 2022 delivery 0.238 June 30, 2024 Spot Rate 0.242 Forward rate for July 15, 2022 delivery 0.246 July 15, 2024 Spot Rate 0.252 Forward rate for July 15, 2022 delivery 0.252 On April 15, 2024, a U.S. company takes delivery of PLN 780,000 in merchandise from a Polish supplier. The company will pay the supplier PLN 780,000 on July 15. On April 15, the company also enters a forward contract to buy PLN 780,000 on July 15, 2024. On July 15, the company purchases PLN 780,000 using the forward contract, and pays the supplier. The company's accounting year ends June 30, and it sells the merchandise in September 2022. What is the net effect on pretax earnings for the year ended June 30, 2024 of exchange rate changes due to the purchase and the forward contract? Enter a positive number for an increase or a negative number for a decrease.

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To calculate the net effect on pretax earnings for the year ended June 30 2024 we need to consider t... View the full answer