You have a Texas-based client who is selling western wear to a company in France. You sell the goods to the customer in euros. You have 500,000 euros in accounts receivable due in 3 months and 600,000 euros in accounts receivable due in 6 months.

The customer places an order every 3 months and pays for the order in 6 months. The 600,000 AR is from the order that was placed on November 1, 2020. In 2019, the company ordered a total of 1,800,000 euros worth of goods from your client. In 2020, the company has placed orders of 1,900,000 euros.

Your client has asked you about your analysis of the economy in France, how that might impact the orders the client receives in 2021, and what that would mean as far as currency exposure for the client?