Question
Car Corp. (a U.S. based company) sold parts to a Korean customer on December 16,2011, with payment of 10 million Korean won to be received
Car Corp. (a U.S. based company) sold parts to a Korean customer on December 16,2011, with payment of 10 million Korean won to be received on January 15, 2012. The following exchange rates applied:
Spot rate Forward Rate to Jan.15
December 16,2011 .00092 .00098
December 31, 2011 .00090 .00093
January 15, 2012 .00095 .00095
Assuming a forward contract was not entered into, what would be the net impact on Car Corp's 2011 income statement related to this transaction?
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Auditing Principles Techniques And Practices
Authors: Mustaq Ahmad, Mohd Ashraf Ali
1st Edition
8184841949, 978-8184841947
