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Question - Fujitsu Ltd purchases inventory from DFO Ltd, a listed British company. Relevant events and the spot rates at each date are shown as follows:
Date
Event
Spot rate
15 March 2019
Order E300,000 of inventory
A$1.00 = 60.37
11 May 2019
Purchase takes place as inventory shipped to Fujitsu Ltd (FOB)
A$1.00 = 60.41
30 June 2019
End of financial year
A$1.00 = 60.43
02 July 2019
Inventory arrives at warehouse
A$1.00 = 60.42
14 August 2019
Payment of f300,000 to supplier
A$1.00 = 60.39
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