Question
Coyote Corp. (a U.S. company in Texas) had the following series of transactions in a foreign country during 2021: Mar.1 Bought inventory costing 60,000 pesos
Coyote Corp. (a U.S. company in Texas) had the following series of transactions in a foreign country during 2021:
Mar.1 Bought inventory costing 60,000 pesos on credit.
May 1 Sold 60% of the inventory for 54,000 pesos on credit.
Aug. 1 Collected 48,000 pesos from customers
Sept.1 Paid 36,000 pesos to creditors
The appropriate exchange rates during 2021 were as follows:
March 1, 2021 $0.20 = 1 peso
May 1, 2021 $0.22 = 1 peso
August 1, 2021 $0.23 = 1 peso
September 1, 2021 $0.24 = 1 peso
December 31, 2021 $0.25 = 1 peso
The beginning balance of cash was 50,000 pesos on January 1, 2021, translated at 1 peso = $0.18. What amount will Coyote Corp. report in its 2021 balance sheet for Cash?
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