On December 1, 2016, PEPPER Corporation entered into forward exchange contracts for speculative purposes in anticipation for a gain to sell U.S. $ 10,000 in 90 days for delivery on March 1, 2017 for P40.25. The fiscal year end for PEPPER Corporation is December 31. The Exchange rates available on various dates are as follows: 1-Dec-16 31-Dec-16 1-Mar-17 P40.35 SPOT RATE P40.00 P40.25 30-DAY Forward Rate 40.10 40.35 40.50 60-DAY Forward Rate 40.15 40.40 40.70 90-DAY Forward Rate 40.25 40.45 40.65 120-DAY Forward Rate 40.30 40.50 40.70

On December 1, 2016, PEPPER Corporation entered into forward exchange contracts for speculative purposes in anticipation for a gain to sell U.S. $ 10,000 in 90 days for delivery on March 1, 2017 for P40.25. The fiscal year end for PEPPER Corporation is December 31. The Exchange rates available on various dates are as follows: 1-Dec-16 31-Dec-16 1-Mar-17 P40.35 SPOT RATE P40.00 P40.25 30-DAY Forward Rate 40.10 40.35 40.50 60-DAY Forward Rate 40.15 40.40 40.70 90-DAY Forward Rate 40.25 40.45 40.65 120-DAY Forward Rate 40.30 40.50 40.70

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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23 - Our business, 27.06.202. On the date of purchase, $14,000 was exchanged at the exchange rate of $1 = 6.95. Which of the following calculations is correct in this situation? a) 646 Exchange Profits Hs. 97,300 TL (Creditor) B) 646 Exchange Profits Hs. 4.900 TL (Borrower) NS) 646 Exchange Profits Hs. 4.900 TL (Creditor) D) 656 Foreign Exchange Losses Hs. 4.900 TL (Creditor) TO) 656 Foreign Exchange Losses Hs. 4.900 TL (Borrower)
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25 - The registered value of foreign currency holdings is increased or reduced to the value of the balance sheet day based on the exchange rate at the end of the period. What is this process called?A) EqualizationB) FixingC) IncreaseD) Don't payE) Valuation
Could you please separate the cash inflows and outflows? Cash flows from operating activities 2021 2020 2019 Net income (loss) $ 360,060 $ (549,177) $ 92,139 Adjustments to reconcile net income (loss) to net cash used in operating activities Depreciation and amortization 141,144 164,984 186,425 Unrealized foreign currency exchange rate gain (loss) 18,877 (9,295) (2,073) Loss on extinguishment of senior convertible notes 58,526 0 0 Loss on disposal of property and equipment 4,468 3,740 4,640 Gain on sale of the MyFitnessPal platform 0 (179,318) 0 Non-cash restructuring and impairment charges 26,938 470,543 39,000 Amortization of bond premium 16,891 12,070 254 Stock-based compensation 43,794 42,070 49,618 Deferred income taxes (2,642) 43,992 38,132 Changes in reserves and allowances (25,766) 10,347 (26,096) Changes in operating assets and liabilities: Accounts receivable (31,153) 167,614 (45,450) Inventories 93,287 15,306 149,519 Prepaid…
Ganado Europe (A). Using facts in the chapter for Ganado Europe, assume the exchange rate on January 2, 2016, in Exhibit 11.5 dropped in value from $1.1400/€ to $0.8700/€. Recalculate Ganado Europe's translated balance sheet for January 2, 2016, with the new exchange rate using the current rate method as shown in the popup window,. What is the amount of translation gain or loss? a. What is the amount of translation gain or loss? Enter a positive number for a gain and negative for a loss. $ (Round to the nearest dollar.) Where should it appear in the financial statements? The translation gain (loss) for the year is added to the balance in the Cumulative Translation Adjustment (CTA) account.
QUESTION # 1North Bank has been borrowing in the U.S. markets and lending abroad, thus incurring foreign exchange risk. In a recent transaction, it issued a one-year $2 million CD at 6 percent and funded a loan in euros at 8 percent. The spot rate for the euro was €1.45/$ at the time of the transaction (US being the home country).Information received immediately after the transaction closing indicated that the euro will depreciate to €1.47/$ by year-end. If the information is correct, what will be the realized spread on the loan? What should have been the bank interest rate on the loan to maintain the 2 percent spread? Assume adjustments in principal value are included in the spread.The bank had an opportunity to sell one-year forward marks at €1.46. What would have been the spread on the loan if the bank had hedged forward its foreign exchange exposure?What is interest rate parity theory and calculate that at what forward exchange rate of dollars per euro, an investor in USA would…
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which one is correct please confirm? Q18: "Original exhange rate is £1 = US$1.4565, what is the reciprocal rate?" 1.1876 0.6866 0.842 2.3529