On December 20, 2009, Butanta Company (a U.S. company headquartered in Miami, Florida) sold parts to a
Question:
On December 20, 2009, Butanta Company (a U.S. company headquartered in Miami, Florida) sold parts to a foreign customer at a price of 50,000 ostras. Payment is received on January 10, 2010. Currency exchange rates for 1 ostra are as follows:
December 20, 2009 December 31, 2009 January 10, 2010 LO9
$1.05 1.02 0.98
a. How does the fluctuation in exchange rates affect Butanta’s 2009 income statement?
b. How does the fluctuation in exchange rates affect Butanta’s 2010 income statement?
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Related Book For 
Advanced Accounting
ISBN: 9780073379456
9th Edition
Authors: Joe Ben Hoyle, Timothy S. Doupnik, Thomas F. Schaefer, Oe Ben Hoyle
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