Question
Suppose a U.S. manufacturer, Patton-Stillwell (P-S, Inc), sells its merchandise on account to a firm in the Netherlands for 1,800,000 (euro) expecting payment to be
Suppose a U.S. manufacturer, Patton-Stillwell (P-S, Inc), sells its merchandise on account to a firm in the Netherlands for €1,800,000 (euro) expecting payment to be made in 60-days. The spot rate is currently S0 = $1.09/€.
What amount of dollars is Patton-Stillwell expecting on payment for its merchandise?
If the euro weakens against the dollar to $1.03/€, then P-S will expect to receive how much when the euro are converted to dollars?
If the euro strengthens against the dollar to $1.15/€, then P-S will expect to receive how much in exchange for their merchandise?
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Accounting
Authors: Carl warren, James Reeve, Jonathen Duchac, Sheila Elworthy,
Volume 1, 2nd canadian Edition
176509739, 978-0176509736, 978-0176509743
