Question
On December 20, 2017, Butanta Company (a U.S. company headquartered in Miami, Florida) sold parts to a foreign customer at a price of 95,000 ostras.
On December 20, 2017, Butanta Company (a U.S. company headquartered in Miami, Florida) sold parts to a foreign customer at a price of 95,000 ostras. Payment is received on January 10, 2018. Currency exchange rates for 1 ostra are as follows:
| December 20, 2017 | $ | 1.19 |
| December 31, 2017 | 1.16 | |
| January 10, 2018 | 1.12 | |
a. How does the fluctuation in exchange rates affect Butanta's 2017 income statement?
b. How does the fluctuation in exchange rates affect Butanta's 2018 income statement?
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Cutting Edge Internal Auditing
Authors: Jeffrey Ridley
1st Edition
0470510390, 978-0470510391
