On June 1, Vandervelde Corporation (a U.S.-based manufacturing firm) recelved an order to sell goods to a foreign customer at a price of 180,000 leks. Vandervelde will ship the goods and receive payment in three months on September 1. On June 1, Vandervelde purchased an option to sell 180,000 leks in three months at a strike price of $1.00. It properly designated the option as a fair value hedge of a foreign currency firm commitment. The fair value of the firm commitment is measured by referring to changes in the spot rate. Relevant exchange rates and option premiums for the lek are as follows: Put Option Premium for September 1 (strike price $1.00) $ 0.028 0.021 Spot Rate Date June 1 June 30 September 1 $ 1.00 0.94 0.89 N/A Vandervelde's Incremental borrowing rate is 12 percent. The present value factor for two months at an annual interest rate of 12 percent (1 percent per month) is 0.9803. Vandervelde Corporation must close its books and prepare its second-quarter financial statements on June 30 a. Prepare Journal entries for the foreign currency option and firm commitment. b. What is the impact on net Income over the two accounting periods? c. What is the net cash inflow resulting from the sale of goods to the foreign customer? Complete this question by entering your answers in the tabs below Req A Req B and C b. What is the impact on net income over the two accounting periods? (Do not round intermediate calculations. In case of negative impact on net income, answer should be entered with a minus sign. Round your final answers to nearest whole dollar.) c. What is the net cash inflow resulting from the sale of goods to the foreign customer? show less Impact on Net Income b. For the second quarter For the third quarter Over the second and third quarters C. Net cash inflovw On June 1, Vandervelde Corporation (a U.S.-based manufacturing firm) recelved an order to sell goods to a foreign customer at a price of 180,000 leks. Vandervelde will ship the goods and receive payment in three months on September 1. On June 1, Vandervelde purchased an option to sell 180,000 leks in three months at a strike price of $1.00. It properly designated the option as a fair value hedge of a foreign currency firm commitment. The fair value of the firm commitment is measured by referring to changes in the spot rate. Relevant exchange rates and option premiums for the lek are as follows: Put Option Premium for September 1 (strike price $1.00) $ 0.028 0.021 Spot Rate Date June 1 June 30 September 1 $ 1.00 0.94 0.89 N/A Vandervelde's Incremental borrowing rate is 12 percent. The present value factor for two months at an annual interest rate of 12 percent (1 percent per month) is 0.9803. Vandervelde Corporation must close its books and prepare its second-quarter financial statements on June 30 a. Prepare Journal entries for the foreign currency option and firm commitment. b. What is the impact on net Income over the two accounting periods? c. What is the net cash inflow resulting from the sale of goods to the foreign customer? Complete this question by entering your answers in the tabs below Req A Req B and C b. What is the impact on net income over the two accounting periods? (Do not round intermediate calculations. In case of negative impact on net income, answer should be entered with a minus sign. Round your final answers to nearest whole dollar.) c. What is the net cash inflow resulting from the sale of goods to the foreign customer? show less Impact on Net Income b. For the second quarter For the third quarter Over the second and third quarters C. Net cash inflovw