Goler Company, based in Illinois, sells its product at home and abroad. On March 1, Bondi Company, an Australian company, orders $30,000 worth of product to be delivered immediately and to be paid in Australian dollars (AUD$) on May 1. The selling price in Australian dollars is computed using the exchange rate in effect on March 1.

Required:
1. On March 1, how much does Goler expect to receive from Bondi in Australian dollars in payment for the order?
2. On May 1, how much does Goler actually receive from Bondi in Australian dollars? What is that amount converted to dollars?
3. Did Goler experience an exchange gain or loss on the transaction? Of how much in dollars?
4. What if the exchange rate of Australian dollars for $1 on May 1 was $1 5 AUD $1.39?
How much would Goler receive from Bondi in Australian dollars? What is that amount converted into dollars? Would Goler experience an exchange gain or loss on the transaction?

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Spot rates of Australian dollars for $1 $1 = AUD $1.40 March 1 May 1 $1 = AUD $1.37