Golden Doors enters into a forward exchange rate contract to purchase US$300 000 on 1 September...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Golden Doors enters into a forward exchange rate contract to purchase US$300 000 on 1 September at a rate of A$1 = US$0.69. On 2 September Golden Doors takes delivery of inventory from its US supplier at a price of US$300 000. On 2 September A$1 = US$ 0.65. Calculate the amount Golden %3D Doors would have paid on 2 September in A$ if it had not entered into the forward exchange rate contract, and any gain or loss it has made (rounded to the nearest dollar). a. cost in A$434 782; loss of $134 782 O b. cost in A$434 782; loss of $26 756 O c. cost in A$461 538; gain of $161 538 O d. cost in A$461 538; gain of $26 756 Golden Doors enters into a forward exchange rate contract to purchase US$300 000 on 1 September at a rate of A$1 = US$0.69. On 2 September Golden Doors takes delivery of inventory from its US supplier at a price of US$300 000. On 2 September A$1 = US$ 0.65. Calculate the amount Golden %3D Doors would have paid on 2 September in A$ if it had not entered into the forward exchange rate contract, and any gain or loss it has made (rounded to the nearest dollar). a. cost in A$434 782; loss of $134 782 O b. cost in A$434 782; loss of $26 756 O c. cost in A$461 538; gain of $161 538 O d. cost in A$461 538; gain of $26 756
Expert Answer:
Answer rating: 100% (QA)
D Cost in A 461538 gain of 26756 Solution Amount would be paid on 2 Sep in A if company not en... View the full answer
Related Book For
Posted Date:
Students also viewed these accounting questions
-
In July of 2016, Sue enters into a forward agreement with Ann to lock in a sales price for wheat. Sue anticipates selling 300,000 bushels of wheat at the market in March of 2017. Ann agrees to a...
-
It is sometimes argued that a forward exchange rate is an unbiased predictor of future exchange rates. Under what circumstances is this so?
-
On June 1, 2016, TCO enters into a forward agreement with XYZ to buy 100,000 gallons of fuel oil at $2.40 on December 31, 2016. At the time of inception of the forward, the price of fuel oil is...
-
Be able to explain how changes in transportation impacted economic growth in the United States prior to WWI.
-
Debbie Snyder has just graduated from college and needs to buy a car to commute to work. She estimates that she can afford to pay about $450 per month for a loan or lease and has about $2,000 in...
-
In the following data, X is the Fahrenheit temperature and Y is the number of times a cricket chirps in 1 min (see Problem 3, Section 4.2). In Problems 6-12, construct a scatterplot of the given...
-
A Pelton wheel is supplied with water from a lake at an elevation \(H\) above the turbine. The penstock that supplies the water to the wheel is of length \(\ell\), diameter \(D\), and friction factor...
-
The Quick Change Oil Company has a number of outlets in the metropolitan Seattle area. The daily number of oil changes at the Oak Street outlet in the past 20 days are: The data are to be organized...
-
First calculate strain energy change U Second, Calculate The work done W. Then, calculate G (W-U)/ change in displacement 7) Consider a single, elastic fiber of diameter d, embedded in a rigid...
-
In cryptography, cipher text is encrypted or encoded text that is unreadable by a human or computer without the proper algorithm to decrypt it into plain text. The impact of erroneous cipher texts on...
-
Neptune Transport Company makes per carriers, the Cat-allac. It is made of plastic with metal doors. Information for the product for the month of October is given in the following tables: Input...
-
Mammalian species differ in the size and composition of the cerebral cortex. Describe three developmental processes that determine the number of neurons in the mature cerebral cortex.
-
What do you label retained earnings as if it's not an option?? Would it be service revenue?
-
In which category of occupations is there the lowest gender gap? Explain why.
-
Why should student affairs administrators at universities implement or fund financial aid workshops for first-generation college students?
-
How do credit ratings agencies help facilitate efficient capital markets?
-
What technique is used by companies, such as Netflix, Amazon and Spotify to make recommendations to their customers?
-
APC16550D UART has a clock running at18.432 MHz and its baud rate is set to 2000.Determine the HEX contents of its DLM and DLL registers. Please can you explain step by step and in detail how you get...
-
What volatility smile is likely to be observed when (a) Both tails of the stock price distribution are less heavy than those of the lognormal distribution? (b) The right tail is heavier, and the left...
-
What is the value of a five-year swap where LIBOR is paid in the usual way and in return LIBOR compounded at LIBOR is received on the other side? The principal on both sides is $100 million. Payment...
-
Suppose a = 0.05, = 0.015, and the term structure is flat at 10%. Construct a trinomial tree for the Hull-White model where there are two time steps, each one year in length.
-
\(X\) is the number of bits in error in the next four bits transmitted. What is the expected value of the square of the number of bits in error? Now, \(h(X)=X^{2}\). Therefore, \[ \begin{aligned}...
-
Data 2.7 on page 95 introduces the dataset HollywoodMovies, which contains information on more than 900 movies that came out of Hollywood between 2007 and 2013. One of the variables is the budget (in...
-
Correlation between height and weight for players on the 2014 Brazil World Cup Team, using data from all 23 players on the roster. State whether the quantity described is a parameter or a statistic...
Study smarter with the SolutionInn App