Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. spindler, incorporated (a u.s.-based company), imp

Spindler, Incorporated (a U.S.-based company), imports surfboards from a supplier in Brazil and sells them...

80.2K

Verified Solution

Question

Accounting

Spindler, Incorporated (a U.S.-based company), imports surfboards from a supplier in Brazil and sells them in the United States. Purchases are denominated in terms of the Brazilian real (BRL). During 2023, Spindler acquires 250 surfboards at a price of BRL 1,600 per surfboard, for a total of BRL 400,000. Spindler will pay for the surfboards when it sells them. Relevant exchange rates are as follows:
Date U.S. Dollar per Brazilian Real (BRL)
September 1,2023 $ 0.220
December 1,20230.210
December 31,20230.230
March 1,20240.215
Required:
Assume that Spindler acquired the surfboards on September 1,2023, and made payment on December 1,2023. What is the effect of the exchange rate fluctuations on reported income in 2023?
Assume that Spindler acquired the surfboards on December 1,2023, and made payment on March 1,2024. What is the effect of the exchange rate fluctuations on reported income in 2023 and 2024?
Assume that Spindler acquired the surfboards on September 1,2023, and made payment on March 1,2024. What is the effect of the exchange rate fluctuations on reported income in 2023 and in 2024?
image

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students