Brisco Bricks purchases raw material from its foreign supplier, Bolivian Clay, on May 8. Payment of 2,000,000 foreign currency units (FC) is due in 30 days. May 31 is Brisco's fiscal year-end. The pertinent exchange rates were as follows;May 8 Spot rate #1.25 = 1 FC;May 8 30-day Forward rate $1.22 = 1 FC;May 31 Spot rate $1.26 = 1 FC;June 7 Spot rate $1.20 = 1 FC;Required;1) For what amount should Brisco's Accounts Payable be credited on May 8?;2) How much Foreign Exchange Gain or Loss should Brisco record on May 31?;3) How much US $ will it cost Brisco to finally pay the payable on June 7?
Paper#24950 | Written in 18-Jul-2015Price : $22