Question: Hi! I need help on these problems. Thank you! Problem 17. On November 1, 2016, ADD Inc. expects to purchase 5,000 kilos of textile from

Hi! I need help on these problems. Thank you!

Hi! I need help on these problems. Thank you! Problem 17. On

Problem 17. On November 1, 2016, ADD Inc. expects to purchase 5,000 kilos of textile from a supplier on March 1, 2017 at the prevailing market price on such date. Recent market factors indicate that the market price of textile is within the vicinity of P20 per kilo on November 1, 2016. On the same date, to protect itself from the variability of the market price of textile, ADD Inc. entered into a forward contract with speculator China Bank. The market price of textile is P24/kg on December 31, 2016 and P19/kg on March 1, 2017. All 5,000 kilos of textile are sold on year 2017. Required: Based on the result of your audit, determine the following: 1. Forward contract receivable/(payable) on 12/31/2016 2. Unrealized holding gain/(loss) from cash flow hedge in OCI-SCI for the year ended 12/31/2016 3. Forward contract receivable/(payable) on 3/1/2017 before cash settlement with China Bank on March 1, 2017 4. Unrealized holding gain/(loss) from cash flow hedge in OCI-SCI for the year ended 12/31/2017 5. Cost of goods sold/Purchase for the year ended 12/31/2017 Problem 18. On December 1, 2016, UMBRO Inc. expects to purchase 1,000 kilos of goods from a supplier on February 1, 2017 at the prevailing market price on such date. Recent market factors indicate that the market price of goods is within the vicinity of P10 per kilo on December 1, 2016. On the same date, to protect itself from the variability of the market price of goods, UMBRO Inc. entered into a future contract with speculator PNB Bank. The market price of goods is P8/kg on December 31, 2016 and P13/kg on February 1, 2017. All 1,000 kilos of goods are sold on year 2017. Required: Based on the result of your audit, determine the following: 1. Forward contract receivable/(payable) on 12/31/2016 2. Unrealized holding gain/(loss) from cash flow hedge in OCI-SCI for the year ended 12/31/2016 3. Forward contract receivable/(payable) on 3/1/2017 before cash settlement with PNB Bank on March 1, 2017 4. Unrealized holding gain/(loss) from cash flow hedge in OCI-SCI for the year ended 12/31/2017 5. Cost of goods sold/Purchase for the year ended 12/31/2017

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