P5-46. Foreign Currency Fluctuations and Revenue Boeing Corporation has considerable non-U.S. operations. The table below shows Boeing's 2015 Boeing Corporation revenue by geographic segment along with related exchange rates at the beginning and end of the year. (BA) The exchange rates represent the foreign currency equivalent of $1. LO4 Revenue USD Strengthened Effect (Weakened) USD exchange rate Year ended December 31, 2015 ($ millions) Revenue 01/01/15 12/31/15 12,248 12,556 10,846 2,601 1,870 1,398 1,875 56,827 39,287 0.7063 0.9203 6.4952 3.6729 4.3044 1.3847 11.5642 15.5159 14.7414 17.2494 0.7543 0.8266 6.2025 3.6729 3.5046 1.1618 Europe . . Africa . . Required a. Most of Boeing's contracts are denominated in SUS. Assume instead that Boeing wrote contracts for its international customers in their respective domestic currencies. For simplicity, assume the contracts were written on January 2, 2015, and revenue was collected and recognized on December 31, 2015. Use the exchange rate information in the table to calculate the effect on Boeing's 2015 revenue if contracts had been denominated in the various foreign currencies b. How would the foreign exchange gain or loss that was computed affect net income? c. How could Bocing treat such a foreign exchange gain or loss in any non-GAAP disclosures the company might make? Consider Realized and Unrealized gains and losses