Forward Contracts Assume that each of the following transactions can be hedged by buying or selling Japanese yen in the forward market. The quoted yen to dollar exchange rates are:

If Spiller Company hedges each of the following transactions (except d), what dollar amount will the company receive or pay when the receivable or payable is settled?

a. Auto parts inventory is purchased for ¥2,400,000 payable in 60 days.

b. Photographic supplies are sold for ¥800,000, with payment to be received in 30 days.

c. Cartons and other fast-food supplies are sold for ¥4 000,000, with payment to be received in 180 days.

d. Artworks are purchased for ¥700,000 payable immediately in cash.

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Spot 30-day forward 120 = $1 110 = $1 60-day forward 180-day forward 112 114 = $1 $1