7 Golfing Inc. assembles golf carts that are used on golf course as well as other tourist locations such as resorts and beaches. In recent years, Golfing Inc. has received multiple inquiries from companies based in Cuba for the purchase of their product. In consideration of the contract, Golfing Inc. has requested payments to be made via letter of credit. Furthermore, given the size of the contract, Golfing Inc.'s supplier is seeking a guarantee of future payment. Which of the following will be an ideal type of letter of credit Golfing Inc. should ask for? Golf ☆ a. Transferable letter of credit Suypar b. Revolving letter of credit beyer C. Red clause letter of credit Seler d. Confirmed letter of credit espechr

7 Golfing Inc. assembles golf carts that are used on golf course as well as other tourist locations such as resorts and beaches. In recent years, Golfing Inc. has received multiple inquiries from companies based in Cuba for the purchase of their product. In consideration of the contract, Golfing Inc. has requested payments to be made via letter of credit. Furthermore, given the size of the contract, Golfing Inc.'s supplier is seeking a guarantee of future payment. Which of the following will be an ideal type of letter of credit Golfing Inc. should ask for? Golf ☆ a. Transferable letter of credit Suypar b. Revolving letter of credit beyer C. Red clause letter of credit Seler d. Confirmed letter of credit espechr

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Steve exports high quality custom car parts to other countries and is registered for GST. In August of the current year he exported some parts to a New Zealand mechanical business and the parts were returned to him because they did not fit. Steve undertakes the repairs and uses a number of smaller components in the process. The repaired car parts were returned to the customer in New Zealand in December of the current year. Steve charged the customer for the repair including the parts used. In relation to GST which of the following statements is most correct? a. Steve will not be entitled to input tax credits for any costs associated with the initial sale or the repair of the parts. b. Steve should charge GST on the initial sale but not on the repairs. c. Steve should charge GST on both the initial sale and the repairs. d. Steve should not charge GST on any part of the transaction.
4
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Brandlin company of anaheim, california, sells parts to a foreign customer on december 1, 2017, with payment of 24,000 korunas to be received on march 1, 2018. Brandlin enters into a forward contact on december 1, 2017 to sell 24,000 korunas on march 1, 2018. Relevant exchange rates for the korunas on various dates are as follow: date spot rate forward rate december 1, 2017 4.20 4.275 december 31, 2017 4.30 4.400 march 1, 2018 4.45 n/a brandli's incremental borrowing rate is 12 percent. The present value factor for two months at annual interest rate of 12 percent (1 percent per month) is 0.9803. Brandlin must close its books and prepare financial statements at december 31. 1. Assuming that brandlin designates the forward contract as a cash flow hedge of a foreign currency receivable and recognizes any premium or discount…
XYZ Marbles (PTY) Ltd has entered into agreement with Buy and Deliver (Pty) Ltd to provide thefollowing goods to its customer in South Korea. The terms of the agreement are as below:1. Buy and Deliver (Pty) Ltd is to arrange for the transport of the marbles from Namibia to the SouthKorean customer. The cost of transport will be on XYZ Marbles (Pty) Ltd2. Buy and Deliver (Pty) Ltd is to clear all the export requirements XYZ (Pty) Ltd in Namibia.3. XYZ Marbles (Pty) holds the risk of the Marbles stock until they reach the customer.4. XYZ (Pty) Ltd has set the price of the Marbles at N$ 1,000,000.00. Buy and Deliver is not allowed tomake any changes to the price set. The transaction has been completed as below:01 January 2020XYZ Marbles (Pty) Ltd completes the extraction of the marbles.30 January 2020Buy and Deliver arranges the transport to South Korea of the Marbles 28 February 2020 The customer receives the goods and pays over the sale amount of N$ 1,000,000 to XYZ Marbles (Pty) Ltd 28…
1
(Use Calulator or Formula Approach) After carefully going over your budget, you have determined you can afford to pay $632 per month toward a new sports car. You call up your local bank and find out that the going rate is 1 percent per month for 48 months. How much can you borrow?
Icebreaker Company (a U.S.-based company) purchases materials from a foreign supplier on December 1, 2020, with payment of 23,000 dinars to be made on March 1, 2021. The materials are consumed immediately and recognized as cost of goods sold at the date of purchase. On December 1, 2020, Icebreaker enters into a forward contract to purchase 23,000 dinars on March 1, 2021. Relevant exchange rates for the dinar on various dates are as follows: Date Spot Rate Forward Rate(to March 1, 2021) December 1, 2020 $ 4.10 $ 4.175 December 31, 2020 4.20 4.300 March 1, 2021 4.35 N/A a-1. Assuming that Icebreaker designates the forward contract as a cash flow hedge of a foreign currency payable, prepare journal entries for the import purchase and foreign currency forward contract in U.S. dollars. a-2. What is the impact on 2020 net income? a-3. What is the impact on 2021 net income? a-4. What is the impact on net income over the two accounting periods?…
Silver Coin Ltd. is a Tunisian manufacturing company. It has received an export order of OMR 18,000. The finance manager of the company would like to identify the equivalent amount in terms of TND. He asked his banker and received the following quotations: USD/OMR=0.3859 USD/TND= 2.8255 What would be the equivalent amount of the export order in terms of Tunisian Dinar? O a. TND 131,792.4 O b. OMR 131,860.8 OC OMR 113,860.8 O d. TND 103,792.4

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