Pencil corp uses the US dollar and its functional currency. The receivable is not hedged. At December 31, 2020 pencil has the following foreign currency balances: Account receivable (due in 3 months) FC 30,000 Inventory (at cost ) FC 20,000 Fixed assets FC 10,000 The following exchange rates were in effect December 31 spot rate !FC = .6 US December 31 three month forward rate: !FC = .5US Historic rate: !FC = .7US Average exchange rate(2020) !FC = .8US. What is the US dollar equivalent for the total of accounts receivable, inventory and fixed assets that will be reported by pencil on its december 31, 2020 balance sheet.
Pencil corp uses the US dollar and its functional currency. The receivable is not hedged. At December 31, 2020 pencil has the following foreign currency balances: Account receivable (due in 3 months) FC 30,000 Inventory (at cost ) FC 20,000 Fixed assets FC 10,000 The following exchange rates were in effect December 31 spot rate !FC = .6 US December 31 three month forward rate: !FC = .5US Historic rate: !FC = .7US Average exchange rate(2020) !FC = .8US. What is the US dollar equivalent for the total of accounts receivable, inventory and fixed assets that will be reported by pencil on its december 31, 2020 balance sheet.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Pencil corp uses the US dollar and its functional currency. The receivable is not hedged. At December 31, 2020 pencil has the following foreign currency balances: Account receivable (due in 3 months) FC 30,000 Inventory (at cost ) FC 20,000 Fixed assets FC 10,000 The following exchange rates were in effect December 31 spot rate !FC = .6 US December 31 three month forward rate: !FC = .5US Historic rate: !FC = .7US Average exchange rate(2020) !FC = .8US. What is the US dollar equivalent for the total of accounts receivable , inventory and fixed assets that will be reported by pencil on its december 31, 2020 balance sheet .
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