Question
QUESTION 2 (22 marks) OptiGuard Co is a company based in the United Kingdom (UK). The functional currency used is the British pound ().
QUESTION 2 (22 marks) OptiGuard Co is a company based in the United Kingdom (UK). The functional currency used is the British pound (). OptiGuard Co buys raw materials and components from US-based suppliers and sells their manufactured products to US-based customers. US supplier OptiGuard Co has placed an order for specialised weather-damage resistant glass panels from a US supplier. The order for these frames was $1.2 million, and payment must be made in US $ in one month's time. US customer A new unvetted US-based customer has placed an order of $16 million to develop and manufacture high-strength clear glass roofs to meet their specifications. The cost of the first prototypes to be developed and manufactured for testing before production commences on the contract is $2.8 million. No deposit was required, where the full payment for the development and manufacturing of the prototype glass roof panels, to be received from the customer, will be in US $ in three months' time.
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