1Exchange Rate Relationships. Below are the exchange rates between the U.S. dollar and five different currencies. The rates are the foreign currency to the dollar quoted in terms of the number of units of December 31, 2003 December 31, 2004 Euro .79670 .73310 British pound .56250 51920 Swiss franc 1.2423 1.1318 Chinese yuan 8.2867 8.2865 2.9030 Brazilian real 2.66150 Against which currencies did the U.S. dollar weaken in 2004? strengthen? a. b. What is the exchange rate of each currency on December 31, 2004 in terms of dol- lars per unit of the foreign currency? 3. Assume the following spot exchange rates between the U.S. dollar and the British pound sterling: $1.8685 March 1 $1.8258 March 31 $1.7740 April 30 On March 1, XYZ, a U.S. company, sells goods to a British importer for 1,000,000. Pay April 30, and XYZ adjusts its financial statements quarterly ment is to be received on What are the journal entries for XYZ on March 1, March 31, and April 30? Was the dol- lar strengthening weakening over the period of the contract? or 4. Assume the following spot exchange rates between the U.S. dollar and the British pound sterling: March 1 $1.8685 March 31 $1.8258 April 30 $1.7740 On March 1, XYZ, a U.S. company, sells goods to a British importer for $1,868,500 at the spot rate and denominates the sale in dollars. Payment is to be received on 30, and XYZ adjusts its financial statements quarterly. What are April the journal entries on March 1, March 31, and April 30? Was the dollar strengthening or weakening over the period of the contract