Question
On April 4, 2020, Conrado Uberita Beauty Products delivered to a Pakistan firm inventory it sold for 100,000 rupees. Payment is due to be received
On April 4, 2020, Conrado Uberita Beauty Products delivered to a Pakistan firm inventory it sold for 100,000 rupees. Payment is due to be received on August 2, 2020. The company's fiscal year ends June 30. Also on April 4, Conrado Uberita Beauty Products entered into a foreign exchange forward contract to sell 100,000 rupees on August 2, 2020.
April 4, 2020
June 30, 2020
August 2, 2020
Spot Rate (rupees)
P 0.80
P 0.84
P 0.82
Forward Rate (rupees)
0.77
0.83
0.82
The fair value of the forward contract on June 30, 2020 is
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Financial Statement Fraud Prevention And Detection
Authors: Zabihollah Rezaee, Richard Riley
2nd Edition
0470543205, 9780470543207
