Question $05$: VA$-$ Calico Industries is a Canadian Company

that sells products to countries internationally.

On Dec $1,20$X$8,$ Calico sold $10,000$ units of products to a

wholesaler in a foreign country at ba total cost of $600,000$

foreign currency units $($FCUs$).$ At the time, the spot rate

was FCU$1=C$$$0\mathrm{.}741.$ The invoice terms required payment

by April $1,209.$

On Dec $3,20$X$8,$ Calico decided to enter into a forward

contract with a bank at the $120-$day forward rate of FCUI $=$

$C$$$0\mathrm{.}781.$

Hedge accounting is not applied.

Calico's fiscal year end is Dec $31$ and on this date, in $208,$

the spot rate was FCU$1=C$$$0\mathrm{.}757$ and forward rate was

FCU$1=C$$$0\mathrm{.}791.$ The customer made its payment to Calico

on April $1,20x9$ when the spot rate was FCU$1=C$$$0\mathrm{.}802$

Required:

The sale and the forward contract

Adjustment required on Dec $31,20$X$8$

The cash received from the customer on April $1,20$X$9$