What is the amount of cash that lewis will receive

Assignment Help Accounting Basics
Reference no: EM131896006

Question - Assume that Lewis International sells running shoes to a British importer on June 1 and the sale is denominated at £75,000 and will be collected on July 15th. At the same time, Lewis International entered into a forward contract to hedge the receivable. Assume the following exchange rates:

Spot rate on June 1 $1.6200

Forward rate for July 15 delivery $1.6000

Spot rate on June 30 $1.6100

Spot rate on July 15 $1.5950

What is the amount of cash that Lewis will receive for the sale?

a. $120,750

b. $120,000

c. $119,625

d. $121,500

Reference no: EM131896006

Questions Cloud

Deal with conventional roles of the 21st century : How do women or men today have to deal with conventional roles of the 21st century?
How many primary types are in the data : How many primary types are in the data? How many are described as "ATTEMPT THEFT"? How many of those resulted in arrests?
What is the net amount of vat paid by the wholesaler : The markup on the merchandise is £10. What is the net amount of VAT paid by the wholesaler to Customs and Excise
Choose any one of hamlet''s soliloquies and analyze it : Choose any one of Hamlet's soliloquies and analyze it. What thoughts and feelings does Hamlet express? What theme or themes in the play does it contribute to?
What is the amount of cash that lewis will receive : Assume that Lewis International sells running shoes to a British importer on June 1, What is the amount of cash that Lewis will receive for the sale
What is unique about making a business-to-business sale : What is unique or noteworthy about making a business-to-business (B2B) sale, as compared to selling to individuals or family units?
What mass of ether will be produced : What mass of ether will be produced if 221 g of ethanol reacts with a 68.9 percent yield?
Potassium hydroxide and phosphoric acid react : Potassium hydroxide and phosphoric acid react to form potassium phosphate and water according to the equation:
What is the company warranty expense : A company sells computers at a selling price of $1,800 each. What is the company's warranty expense for the month of November

Reviews

Write a Review

Accounting Basics Questions & Answers

  The accountants and engineers have developed the following

problem letterman office service amp supply sells a variety of office equipment including the executive office chair.

  Te following data was obtained for a company that makes

the following data was obtained for a company that makes statuesstandard inputs expected for each unit of output

  Calculate the unit manufacturing cost of the us and eu

wedig diagnostics manufactures two laser photometers that are used in preparing dna tests. the u.s. model is designed

  Why would an increase in sales resulting from offering an

fdp company produces a variety of home security products. gary price the companys president is concerned with the

  In which system should the firm invest

Net present value: Blanda Incorporated management is considering investing in two alternative production systems. The systems are mutually exclusive.

  Discuss sec charges against pwc partner

find the Accounting Today articles to be a valuable, ongoing resource for current information in the accounting profession

  Review problem-expenditure-expense accruals

(Expenditure/expense accruals) A city was incorporated as of January 1, 2013. It is preparing its first set of financial statements as of December 31, 2013.

  List some advantages of a pos system

List some advantages of a POS system.

  A current ethical issue related to financial reporting fraud

a current ethical issue related to financial reporting fraud in any company or entity

  Prepared the following unadjusted trial balance

The balance in unearned fees represented the February 1 receipt in advance for services to be provided. Only$1,600 of the services was provided between February 1 and February 28.

  Number nuclear disintegrations

The activity of a radioactive sample is the number nuclear disintegrations per second, which is equal to the first-order rate constant times the number of radioactive nuclei present.

  What is the correct net income

Ivanhoe Company reports net income of $85,150 in 2017. However, ending inventory was understated by $6,590. What is the correct net income for 2017

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd