Hi dear helper,

Please letting me know how to calculate it(step by step) and give me an explanation about the steps, thanks, I'll give you the thumb!

(If you can't or do not want to, please let someone else do, thanks)

Answer following questions about cash translation 1. On 1 June 2012 Hum pty Ltd an Australian fashion retailer purchased merino clothing from a New Zealand supplier and was invoiced NZD 80,000. Hum pty Ltd paid the account on 15 August 2012 and the inventory was sold for AUD 126,100 during August 2012. Other information The financial year ends on 30 June 2012. The functional currency is the Australian dollar Exchange rates during the year were as follow: FX rate @ 01/06/2012 FX rate @ 30/06/2012 FX rate @ 15/08/2012 AUD 1.00= NZD 5.40 AUD 1.00 NZD 6.50 AUD 1.00= NZD 7.10 Average FX rate during 08/2012 AUD 1.00 = NZD 5.70 Required: Calculate the exchange rate gain (or loss) recorded by Hum pty Ltd for the year ending 30 June 2012. 2. On 1 June 2013 Hyden Ltd an Australian fashion retailer, purchased fine silk clothing from a supplier in Hong Kong and was invoiced HKD 88,200. Hyden Ltd paid the account on 15 August 2013 and all of the inventory was sold for AUD 105,600 during August 2013. The financial year ends on 30 June 2013. The functional currency is the Australian dollar. Exchange rates during the year were as follow: FX rate@ 01/06/2013 AUD 1.00 = HKD 4.20 AUD 1.00 HKD 6.60 FX rate @ 30/06/2013 FX rate @15/08/2013 = AUD 1.00 HKD 4.80 Average FX rate during 08/2013 AUD 1.00= HKD 5.80 Required: 1. Calculate the total amount to be reported as cost of goods sold in relation to the inventory purchased from the Hong Kong supplier on 1 June 2013 and sold during August 2013 in the books of Hyden Ltd. 2. Calculate the amount of the exchange rate gain or loss recognized on settlement of the trade parable in relation to the inventory purchased from the Hong Kong supplier that is include books of Hyden Ltd for the year ended 30 June 2014