Suppose One Year Ago,Hein Company Had Inventory in Britain Valued

question 1

Multiple Choice

Suppose one year ago,Hein Company had inventory in Britain valued at 240,000 pounds.The exchange rate for dollars to pounds was 1£ = 2 U.S.dollars.This year the exchange rate is 1£ = 1.82 U.S.dollars.The inventory in Britain is still valued at 240,000 pounds.What is the U.S.dollar gain or loss in inventory value as a result of the change in exchange rates?

• A)−$38,880.00
• B)−$43,200.00
• C)−$47,520.00
• D)−$52,272.00
• E)−$57,499.20

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