Question: Chikennella has considerable non-US operations. The table below shows. Chikennella 2015 revenue by geographic segment along with related exchange rates at the beginning and end

Chikennella has considerable non-US operations. The table below shows. Chikennella 2015 revenue by geographic segment along with related exchange rates at the beginning and end of the year. The exchange rates represent the foreign currency equivalent of $1. Year ended December 31, 2015 ($ millions) Revenue 01/01/15 12/31/15 USD Exchange Rate Asia, other than China $13,433 0.7543 0.7063 Europe 12,248 0.8266 0.9203 China 12,556 6.2025 6.4952 Middle East 10,846 3.6729 3.6729 Oceania 2,601 3.5046 4.3044 Canada 1,870 1.1618 1.3847 Africa 1,398 11.5642 15.5159 Latin America and Caribbean 1,875 14.7414 17.2494 Total non-U.S. revenues 56,827 United States 39,287 Total revenues $96,114 Required Most of Chikennellas contracts are denominated in $US. Assume instead that Chikennella wrote contracts for its international customers in their respective domestic currencies. For simplicity, assume the contracts were written on January 2, 2015, and revenue was collected and recognized on December 31, 2015. Use the exchange rate information in the table to calculate the effect on Chikennellas 2015 revenue if the contract had been denominated in the various foreign currencies. How would the foreign exchange gain or loss that was computed affect net income? How could Chikennella treat such a foreign exchange gain or loss in any non-GAAP disclosures the company may make? How should we, as analysis, treat such a foreign exchange gain or loss?

Could you please explain or give a formula of how you calculated the effects of exchange rate in revenues please???

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