On December 20, 2017, Butanta Company (a U.S. company headquartered in Miami, Fl

Question

On December 20, 2017, Butanta Company (a U.S. company headquartered in Miami, Florida) sold parts to a foreign customer at a price of 90,000 ostras. Payment is received on January 10, 2018. Currency exchange rates for 1 ostra are as follows: December 20, 2017 December 31, 2017 anuary 10, 2018 $1.12 1.09 1.05 points eBook a. How does the fluctuation in exchange rates affect Butanta's 2017 income statement? b. How does the fluctuation in exchange rates affect Butanta's 2018 income statement? Print a. The ostra receivable in dollar value, resulting in a foreign of in dollar value, resulting in a foreign of References exchange in 2017 b. The ostra receivable exchange in 2018

Explanation / Answer

A) Ostra Receivable as on December 20,2017 at an exchange rate of 1.12 = 90000*1.12= $ 100800

B) Ostra Receivable as on January 10,2018 at an exchange rate of 1.05 = 90000*1.05 = $ 94500

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