Answered: ees on August 2, 2017. 04/04/2017…

Business

Accounting

ees on August 2, 2017. 04/04/2017 06/30/17 08/02/2017 Spot Rate (Rupee) 0.80 0.84 0.82 Forward Rate (Rupee) 0.77 0.83

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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Question

On April 4, 2017, Conrado Uberita Beauty Products delivered to Pakistan firm inventory if sold
for 100,000 rupees. Payment is due to be received on August 2, 2017. The company’s fiscal year
ends June 30. Also on April 4, Condrado Uberita Beauty Products entered into a foreign
exchange forward to sell 100,000 rupees on August 2, 2017.

	04/04/2017	06/30/17	08/02/2017
Spot Rate (Rupee)	0.80	0.84	0.82
Forward Rate (Rupee)	0.77	0.83	0.82

The fair value of forward contract August 2 2017?

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