a. How much is the ForEx gain or (loss) on December 31, 2017? b. How much is the outstanding accounts payable as of December 31,2017? c. How much is the ForEx gain or (Loss) on February 1, 2018? d. How much is the Net ForEx gain or (loss)?
a. How much is the ForEx gain or (loss) on December 31, 2017? b. How much is the outstanding accounts payable as of December 31,2017? c. How much is the ForEx gain or (Loss) on February 1, 2018? d. How much is the Net ForEx gain or (loss)?
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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Question
a. How much is the ForEx gain or (loss) on December 31, 2017?
b. How much is the outstanding accounts payable as of December 31,2017?
c. How much is the ForEx gain or (Loss) on February 1, 2018?
d. How much is the Net ForEx gain or (loss)?
Transcribed Image Text:On September 1, 2017, JLN Company a Philippine Based
Company ordered 1000 units of inventory from a U.S. Corporation for $25.000.
The inventory was shipped and invoiced to JLN firm on December 1, 2017 to be
paid on February 1, 2018, JLN's fiscal year end is December 31. Assume that
JLN did not engage in any form of hedging activity
The following are the spot rates for U.S. Dollars at various times are as follows:
Buying Spot Rates
Selling Spot Rates
September 1, 2017
P38.90
40.10
December 1. 2017
40.00
40.30
December 31, 2017
40.60
40.85
February 1, 2018
40.45
40.65
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