Please answer this with calculation.
Wise Ltd. (Wise) is a Canadian manufacturing company that produces inexpensive personal and laptop computers. The company has been generating progressively more of its sales from foreign markets. During 2022, the company started purchasing most of its components from a supplier in Germany. To deal with the uncertainty associated with foreign exchange fluctuations, all of Wise's foreign currency denominated receivables and payables are hedged with contracts with the company's bank. Wise's year-end is on December 31. The following transactions took place in 2022 and 2023: On September 1, 2022, Wise purchased components from its German supplier for 100,000 Euros. On that date, Wise entered into a forward contract for 100,000 Euros at the 60-day forward rate of 1 Euro = CDN$1.538. The forward contract was designated as a fair value hedge of the amount payable to the German supplier. Wise settled with the bank and paid its supplier in full on December 1, 2022. On December 1, 2022, Wise also shipped a batch of laptop computers to an American client for US$250,000. The invoice required that Wise receive its payment in full by January 31, 2023. On the date of the sale, the company entered into a forward contract for US$250,000 at the two-month forward rate of US$1 = CDN$1.34. This forward contract was designated to be a fair value hedge of the amount due from the American customer. The dates and exchange rates relevant to these transactions are shown below. Spot rate Forward rate September 1, 2022 1 Euro = CDN$1.525 1 Euro = CDN$1.538 December 1, 2022 1 Euro = CDN$1.4800 1 Euro = CDN$1.4800 December 1, 2022 US$1 = CDN$1.3200 US$1 = CDN$1.3400 December 31, 2022 US$1 = CDN$1.2700 US$1 = CDN$1.2600 Provide the December 31, 2022 balance sheet presentation of the receivable from the American client and the accounts associated with the hedge. Assume Wise used the gross method to record the forward contract. For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). Wise Ltd. (Wise) is a Canadian manufacturing company that produces inexpensive personal and laptop computers. The company has been generating progressively more of its sales from foreign markets. During 2022, the company started purchasing most of its components from a supplier in Germany. To deal with the uncertainty associated with foreign exchange fluctuations, all of Wise's foreign currency denominated receivables and payables are hedged with contracts with the company's bank. Wise's year-end is on December 31. The following transactions took place in 2022 and 2023: On September 1, 2022, Wise purchased components from its German supplier for 100,000 Euros. On that date, Wise entered into a forward contract for 100,000 Euros at the 60-day forward rate of 1 Euro = CDN$1.538. The forward contract was designated as a fair value hedge of the amount payable to the German supplier. Wise settled with the bank and paid its supplier in full on December 1, 2022. On December 1, 2022, Wise also shipped a batch of laptop computers to an American client for US$250,000. The invoice required that Wise receive its payment in full by January 31, 2023. On the date of the sale, the company entered into a forward contract for US$250,000 at the two-month forward rate of US$1 = CDN$1.34. This forward contract was designated to be a fair value hedge of the amount due from the American customer. The dates and exchange rates relevant to these transactions are shown below. Spot rate Forward rate September 1, 2022 1 Euro = CDN$1.525 1 Euro = CDN$1.538 December 1, 2022 1 Euro = CDN$1.4800 1 Euro = CDN$1.4800 December 1, 2022 US$1 = CDN$1.3200 US$1 = CDN$1.3400 December 31, 2022 US$1 = CDN$1.2700 US$1 = CDN$1.2600 Provide the December 31, 2022 balance sheet presentation of the receivable from the American client and the accounts associated with the hedge. Assume Wise used the gross method to record the forward contract. For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac)
