TASK #2Ganado Corporation recently received a payment for one of the consignmentsit exported to Europe, It has 2,000 Euros (€ or EUR) with it. Wanting toexchange all of these for Russian rubles(R or RUB) since it will be importing anew machine from a merchant in Fussia, it obtains the following quotes:Spot rate USD=1.00 EUR (or $/€)Spot rate RUB=1.00 USD (or R/S)a. What is the Russian ruble to euro crossrate?b. How many Russian rubles will you obtain for your Euros?1.128062.40 Ganado Corporation recently received a payment for one of the consignmentsit exported to Europe, It has 2,000 Euros (€ or EUR) with it. Wanting toexchange all of these for Russian rubles(R or RUB) since it will be importing anew machine from a merchant in Russia, it obtains the following quotes:Spot rate USD=1.00 EUR (or $/€)Spot rate RUB=1.00 USD (or R/S)a. What is the Russian ruble to euro crossrate?b. How many Russian rubles will you obtain for your Euros?1.128062.40

A cross currency rate is the rate which is used and computed so that a rate can be determined…

Answered: Ganado Corporation recently received a…

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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Tex Hardware sells many of its products overseas. The following are some selected transactions. Tex sold electronic subassemblies to a firm in Denmark for 160,000 Danish kroner (Dkr) on June 6, when the exchange rate was Dkr 1 = $0.1710. Collection was made on July 3 when the rate was Dkr 1 = $0.1713. On July 22, Tex sold copper fittings to a company in London for £36,000 with payment due on September 20. Also, on July 22, Tex entered into a 60-day forward contract to sell £36,000 at a forward rate of £1 = $1.630. The forward contract is not designated as a hedge. The spot rates follow: July 22 £1 = $1.580 September 20 £1 = $1.612 Tex sold storage devices to a Canadian firm for C$75,000 (Canadian dollars) on October 11, with payment due on November 10. On October 11, Tex entered into a 30-day forward contract to sell Canadian dollars at a forward rate of C$1 = $0.730. The forward contract is not designated as a hedge. The spot rates were as follows: October 11 C$1 =…
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