The following are the exchange rates of various currencies for $1 on July 1 and on October 1.

Required:
1. Indicate whether the dollar has strengthened or weakened against the franc, the mark, and the yen.
2. A U.S. company purchases merchandise on July 1 from a French company for 5,800 francs, payable on October 1. Flow much is the U.S. company's payable for the pur¬
chase on July 1? On October 1? Since the company paid on October 1, what is the amount of exchange gain or loss?
3. A U.S. company sells merchandise on July 1 to a French company for 5,800 francs, payable on October 1. How much is the U.S. company's receivable for the transaction on July 1? On October 1? Since the French company paid on October 1, what is the amount of exchange gain or loss?
4. A U.S. company purchases merchandise on July 1 from a German company for 40,000 DM (deutsche marks), payable on October 1. How much is the U.S. company's payable for the purchase on July 1? On October 1? Since the company paid on October 1, what is the amount of exchange gain or loss?
5. A U.S. company sells merchandise on July 1 to a German company for 40,000 DM, payable on October 1. How much is the U.S. company's receivable for the transaction on July 1? On October 1? Since the German company paid on October 1, what is the amount of exchange gain or loss?
6. A U.S. company purchases merchandise on July 1 from a Japanese company for ¥2,000,000, payable on October 1. How much is the U.S. company's payable for the pur¬
chase on July 1? On October 1? Since the company paid on October 1, what is the amount of exchange gain or loss?
7. A U.S. company sells merchandise on July Uto a Japanese company for ¥2,000,000, payable on October 1. How much is the U.S. company's receivable for the transaction on July 1? On October 1? Since the Japanese company paid on October 1, what is the amount of exchange gain or loss?

Transcribed Image Text:

July 1 October 1 Franc 5.80 6.00 Mark Yen 1.78 115.00 2.00 114.00