On June 1, Cagle Co

question 93

Multiple Choice

On June 1, Cagle Co. received a signed agreement to sell inventory for ¥650,000. The sale would take place in 90 days. Cagle immediately signed a 90-day forward contract to sell the yen as soon as they are received. The spot rate on June 1 was ¥1 = $0.003986, and the 90-day forward rate was ¥1 = $0.004021. At what amount would Cagle record the Forward Contract on June 1?

• A) $2,613.65.
• B) $0.
• C) $2,590.90.
• D) $2,275.00.
• E) $1,993.00.

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Definitions:

Least Expensive

The option or solution with the lowest cost among a selection of alternatives.

Edisonian Method

A trial-and-error approach to innovation and problem-solving, inspired by Thomas Edison's experimental practices.

Attribute Listing

A problem-solving technique that involves breaking down a system, issue, or object into its basic attributes and analyzing each to explore possible solutions.

Broadcasting

The transmission of audio and video content to a dispersed audience via any electronic mass communications medium, but traditionally through the electromagnetic spectrum in a one-to-many model.