Cullumber teporting co. is a U. Whalesaler engaged in toregn trade, ihe following transactions are representative at its business dealings. The compary uses a periodic inventory system and is on a calendar-year basis. All exchange rates are direct quotations. Dec. 1 Cullumber Exporting purchased merchandise from Chang's Ltd, a Hong Kong manufacturer. The imvaice was for 280,000 Hong Kang dallars, payable on April 1 On this same date, Cullumber Exporting acauired a forvard contract to buy 290,000 Hong Kong dollars on April 1 for $0.1314. Dec. 29 Cullumber Exporting sold merchandise to Zintel Retailers for 190,000 Hong Kong dollars, receivable in 90 days. No hedring wes imolved. April 1 Cullumber Exporting received 190,000 Hong Kang dollars from Zintel Retailers. April 1 Cullumber Exporting submitted full payment of 280,000 Hong Kong dollars to Chang's, Ltd., after abtaining the 280,000 Hong Kong dollars on its forvard contract. Spot rates and the forvard rates for the Hong Konz dollar were as follows: inte thel 4 4 4