Reference no: EM133094633
Question - Pencil Corp uses the US dollar as its functional currency. The receivable is not hedged. At December 31, 2020 Pencil has the following foreign currency balances:
Accounts 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: 1FC= .6 US
December 31 three month forward rate: 1FC= .5 US
Historic rate: 1FC= .7 US
Average exchange rate (2020): 1FC= .8 US
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.