Examlex
On March 1, 2021, Mattie Company received an order to sell a machine to a customer in England at a price of 200,000 British pounds. The machine was shipped and payment was received on March 1, 2022. On March 1, 2021, Mattie purchased a put option giving it the right to sell 200,000 British pounds on March 1, 2022 at a price of $380,000. Mattie properly designates the option as a fair hedge of the pound firm commitment. The option cost $2,000 and had a fair value of $2,200 on December 31, 2021. The following spot exchange rates apply: Mattie's incremental borrowing rate is 12%, and the present value factor for two months at a 12% annual rate is 0.9803.What was the net impact on Mattie's 2021 income as a result of this fair value hedge of a firm commitment?
Cash Disbursements
The actual outflow of cash for expenses, such as paying salaries, suppliers, and other operating expenses.
Inventory Purchases
The total cost incurred by a business to buy goods for resale or raw materials to produce finished goods.
Operating Expenses
Costs related to the day-to-day functions of a business outside of direct labor and materials, such as rent, utilities, and office supplies.
Budgeted Cash Disbursements
An estimation of the cash outflows a company anticipates over a specified period, including expenses, payments to creditors, and investments.
Q1: On a statement of financial affairs, a
Q5: A parent company owns a controlling interest
Q8: Which of the following is a type
Q42: Gamma Co. owns 80% of Delta Corp.,
Q51: How can an export sale result in
Q60: Name five securities offerings exempt from registration
Q81: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB7395/.jpg" alt=" Patton's operating income
Q83: When a company has preferred stock in
Q125: Tate, Inc. owns 80% of Jeffrey, Inc.
Q126: Tate, Inc. owns 80% of Jeffrey, Inc.