Reference no: EM133433780
Revenue
Sales to US customers and customers in other countries are invoiced in US dollars and the Canadian dollar value equivalents of the US dollar payments received are recognized as revenue. The average exchange rate for 2018 for US dollar sales was US $1 = CAN $1.019, and for 2017 was US $1 = CAN $ 1.105. Sales to Canadian customers are invoiced in Canadian dollars that represent the equivalents of the US dollar values of the sales on the dates that the bats are invoiced. US dollar sales accounted for approximately 75% of sales revenue in 2018 and 2017.
Projected Sales
Justin Mauer, who is in charge of the sales function, has prepared a sales projection for the next three fiscal years on the assumption that production capacity is expanded. The projection includes the following information:
Fiscal Year Ending December 31 2019 2020 (number of bats) 2021
Choice Stock 9,600 12,000 13,800
Exclusive Barrel Model IBH-Pro 1,000 2,000 2,500
Model KM-Regular 1,200 2,400 3,000
2,200 4,400 5,500
Little League 3,200 3,600 4,000
15,000 20,000 23,300
Selling prices will remain the same for fiscal 2019 sales as those charged for fiscal 2018 sales. Justin believes that selling prices will not change in the foreseeable future. Justin estimates that selling expenses will be 8% of revenue stated in US dollars from the sale of bats for fiscal 2019 and for the foreseeable future.
Sales for 2018
Choice stock model
Quantity sold 7,214
Price in USD $100
Revenue $721,400
Sales for 2017
Quantity sold 4320
Exclusive barrel model
Quantity sold in 2018
472 * $130 =$61,360
816 * $120 = $97,920
Revenue =$159,280
Quantity sold in 2017 =432
Little League model
Quantity sold in 2018 =3,046
Price in USD =$60
Revenue =$182,760
Quantity sold in 2017 =2,030
Calculate the revenue amounts for 2018 and 2017 for BB's balance sheet