A US manufacturer sold computer services to a foreign company, invoiced the company, and later received 200,000
Fantastic news! We've Found the answer you've been seeking!
Question:
A US manufacturer sold computer services to a foreign company, invoiced the company, and later received 200,000 units of foreign currency (FC). The exchange rates at the date of sale were FX 1 = US$ 0.75 and when the receivable was settled, FX 1 = US$ 0.80. The exchange rate at the date of the transaction is estimated at 1 FX = 0.72 USD.
Required:
If two trading methods are used, what is the total foreign exchange gain or loss recorded for the transaction based on the settlement date?
Related Book For
College Mathematics For Business Economics, Life Sciences, And Social Sciences
ISBN: 978-0134674148
14th Edition
Authors: Raymond Barnett, Michael Ziegler, Karl Byleen, Christopher Stocker
Posted Date: