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On December 1, 2017, Casio Trading Co

question 37

Essay

On December 1, 2017, Casio Trading Co. sold goods to a German company for 20,000 German marks (20,000 DM) to be collected on January 12, 2018. The exchange rates on December 1 and December 31, 2017 are US$0.50 = 1 DM and US$.60 = 1 DM, respectively. Calculate Casio's revenue in U.S. dollars and its exchange gain or loss for 2017.


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