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On December 20, 2015, Butanta Company (a U.S. company headquartered in Miami, Florida) sold parts to a foreign customer at a price of 175,000 ostras.
On December 20, 2015, Butanta Company (a U.S. company headquartered in Miami, Florida) sold parts to a foreign customer at a price of 175,000 ostras. Payment is received on January 10, 2016. Currency exchange rates for 1 ostra are as follows: |
December 20, 2015 | $ | 1.27 |
December 31, 2015 | 1.24 | |
January 10, 2016 | 1.20 | |
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a. | How does the fluctuation in exchange rates affect Butantas 2015 income statement? |
b. | How does the fluctuation in exchange rates affect Butantas 2016 income statement? |
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