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ate was CHF1 = $1.03 me date, Gillard acqui 1, 20X6, Gillard recei the Swiss francs in ex- 20X6 was CHF1 = $1.

ate was CHF1 = $1.03 me date, Gillard acqui 1, 20X6, Gillard recei the Swiss francs in ex- 20X6 was CHF1 = $1.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On December 1, 20X5, Gillard Ltd. sold goods to International Traders Ltd., a company located in Switzerland for 500,000 Swiss francs (CHF). At the date of sale, the spot rate was CHF1 = $1.0329. On the same date, Gillard acquired a 90- day forward contract at a rate of CHF1 = $1.0315. On March 1, 20X6, Gillard receives full payment from International Traders and delivered the Swiss francs in execution of the forward contract. The spot rate at March 1, 20X6 was CHF1 = $1.0287. Assume that Gillard has a December 31 year-end and that the spot rate on that date was CHF1 = $1.0302. At December 31, the forward rate for a 60 day contract was CHF1 = $1.0394. At December 31, what is the balance of Gillard's accounts receivable? $517,800 $515,700 $515,100 $516,450
Transcribed Image Text:On December 1, 20X5, Gillard Ltd. sold goods to International Traders Ltd., a company located in Switzerland for 500,000 Swiss francs (CHF). At the date of sale, the spot rate was CHF1 = $1.0329. On the same date, Gillard acquired a 90- day forward contract at a rate of CHF1 = $1.0315. On March 1, 20X6, Gillard receives full payment from International Traders and delivered the Swiss francs in execution of the forward contract. The spot rate at March 1, 20X6 was CHF1 = $1.0287. Assume that Gillard has a December 31 year-end and that the spot rate on that date was CHF1 = $1.0302. At December 31, the forward rate for a 60 day contract was CHF1 = $1.0394. At December 31, what is the balance of Gillard's accounts receivable? $517,800 $515,700 $515,100 $516,450
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