THB BW what is correct or Incorrect for the work you have completed so far. It does not indicate completion. 5 On August 1, Ling-Harvey Corporation (a Us.-based importer) placed an order to purchase merchandise from a foreign supplier at price of 400,000 ringgits. Ling-Harvey will recelve and make payment for the 1, Ling-Harvey entered Into a forward contract to purchase 400,000 ringgits in three months at a forward rate of $0.60. It properly designates the forward contract as a fair value hedge of a foreign currency firm commitment. The fair value of the firm commitment is measured by referring to changes in the forward rate. Relevant exchange rotes for the ringgit are as follows: merchandise in three months on October 31. On August 1.25 points Rate Auguat 1 Septenber 30 October 31 0.60 0.63 0-68 0.66 N/A Ling-Harvey's Incremental borrowing rate is 12 percent. The present value factor for one month at an annual interest rate of 12 percent ( percent per month) is 0.9901. Ling-Harvey must close its books and prepare its third-quarter financlal statements on September 30 a. Prepare journal entries for the forward contract and firm commitment through October 31 b. Assuming the inventory is sold in the fourth quarter, what is the impact on net income over the two accounting periods? c. What net cash outflow results from the purchase of merchandise from the foreign supplier? O Answer is not complete Complete this question by entering your answers in the tabs below Req A Req B andc THB BW what is correct or Incorrect for the work you have completed so far. It does not indicate completion. 5 On August 1, Ling-Harvey Corporation (a Us.-based importer) placed an order to purchase merchandise from a foreign supplier at price of 400,000 ringgits. Ling-Harvey will recelve and make payment for the 1, Ling-Harvey entered Into a forward contract to purchase 400,000 ringgits in three months at a forward rate of $0.60. It properly designates the forward contract as a fair value hedge of a foreign currency firm commitment. The fair value of the firm commitment is measured by referring to changes in the forward rate. Relevant exchange rotes for the ringgit are as follows: merchandise in three months on October 31. On August 1.25 points Rate Auguat 1 Septenber 30 October 31 0.60 0.63 0-68 0.66 N/A Ling-Harvey's Incremental borrowing rate is 12 percent. The present value factor for one month at an annual interest rate of 12 percent ( percent per month) is 0.9901. Ling-Harvey must close its books and prepare its third-quarter financlal statements on September 30 a. Prepare journal entries for the forward contract and firm commitment through October 31 b. Assuming the inventory is sold in the fourth quarter, what is the impact on net income over the two accounting periods? c. What net cash outflow results from the purchase of merchandise from the foreign supplier? O Answer is not complete Complete this question by entering your answers in the tabs below Req A Req B andc