Spend about 30 minutes on this section. On 1 March 2022, Indoora company, a Fijian entity, purchases UK1.5 million of inventory from Funny Incorporated, a UK entity. The amount is payable on 1 August 2022. A forward exchange contract for the delivery of UK1.5 million is taken out with Bred Bank on 1 May 2022. Bred Bank requires delivery of the foreign currency on 1 August 2022. Indoora company has a 30 June end of reporting period. The spot rate on 1 March 2022 was 0.51, went down to 0.48 on 1 May 2022 , went down again to 0.47 on 30 June 2022 , and then further reduced to 0.43 on 1 August 2022. The forward rate on 1 May 2022 was 0.46, went down to 0.45 on 30 June 2022 , and further reduced to 0.43 on 1 August 2022. Required: Calculate the value of accounts payable in Indoora's books on 1 March 2022 [3 marks] Calculate the value of the foreign exchange gain/loss recognised by Indoora on 1 May 2022 and 30 June 2022. Clearly label gains and/or losses. [4 marks] Prepare the journal entries for the hedge in Indoora's at the end of the hedge [3 marks] Briefly outline the potential benefits of hedging [2 marks]. Using your calculations above, briefly outline how effective Indoora's hedge was. [ 3 marks] Spend about 30 minutes on this section. On 1 March 2022, Indoora company, a Fijian entity, purchases UK1.5 million of inventory from Funny Incorporated, a UK entity. The amount is payable on 1 August 2022. A forward exchange contract for the delivery of UK1.5 million is taken out with Bred Bank on 1 May 2022. Bred Bank requires delivery of the foreign currency on 1 August 2022. Indoora company has a 30 June end of reporting period. The spot rate on 1 March 2022 was 0.51, went down to 0.48 on 1 May 2022 , went down again to 0.47 on 30 June 2022 , and then further reduced to 0.43 on 1 August 2022. The forward rate on 1 May 2022 was 0.46, went down to 0.45 on 30 June 2022 , and further reduced to 0.43 on 1 August 2022. Required: Calculate the value of accounts payable in Indoora's books on 1 March 2022 [3 marks] Calculate the value of the foreign exchange gain/loss recognised by Indoora on 1 May 2022 and 30 June 2022. Clearly label gains and/or losses. [4 marks] Prepare the journal entries for the hedge in Indoora's at the end of the hedge [3 marks] Briefly outline the potential benefits of hedging [2 marks]. Using your calculations above, briefly outline how effective Indoora's hedge was. [ 3 marks]