ACC 308 AUTUMN, 2018 LUEDERS ASSIGNMENT #5 (30 POINTS) DUE TO BE TURNED IN AT THE BEGINNING OF CLASS ON THURSDAY, 11/01/18 l: @D 1:NA ll ({:itl:RO 11liYbS On December 1, 2017,Americo, Corporation sold wine on credit to Venezia Company for 500,000. Payment is not due for 90 days. Thus, the transaction will be settled on February 28, 2018. On December 1, 2017, Americo, Corporation also entered into a 90-day forward contract to sell 500,000. The forward contract is not designated as a hedge. The direct exchange rates were as follows: SPOT FORWARD 12/1/2017 1.20 12/31/2017 1.14 $ 2/28/20181.16 1.21 (90 days) 1.17 (30 days) REQUIRED: Prepare the required information below for both the original (underlying) transaction and the related forward contract. BE SURE TO CLEARLY SHOW ALL OF YOUR WORK ACC 308 AUTUMN, 2018 LUEDERS ASSIGNMENT #5 (30 POINTS) DUE TO BE TURNED IN AT THE BEGINNING OF CLASS ON THURSDAY, 11/01/18 l: @D 1:NA ll ({:itl:RO 11liYbS On December 1, 2017,Americo, Corporation sold wine on credit to Venezia Company for 500,000. Payment is not due for 90 days. Thus, the transaction will be settled on February 28, 2018. On December 1, 2017, Americo, Corporation also entered into a 90-day forward contract to sell 500,000. The forward contract is not designated as a hedge. The direct exchange rates were as follows: SPOT FORWARD 12/1/2017 1.20 12/31/2017 1.14 $ 2/28/20181.16 1.21 (90 days) 1.17 (30 days) REQUIRED: Prepare the required information below for both the original (underlying) transaction and the related forward contract. BE SURE TO CLEARLY SHOW ALL OF YOUR WORK