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One year ago, Mason Manufacturing, Inc. had inventory in Britain valued at 240,000 British pounds sterling. The exchange rate for dollars to pounds was 1
One year ago, Mason Manufacturing, Inc. had inventory in Britain valued at 240,000 British pounds sterling. The exchange rate for dollars to pounds was 1 pound = 2 U.S. dollars. This year, the exchange rate is 1 pound = 1.82 U.S. dollars. The inventory in Britain is still valued at 240,000 British pounds.
What is the gain or loss in inventory value in U.S. dollars as a result of the change in exchange rates?
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