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:

Job Enrichment

Enhancing a job by adding tasks that increase responsibility and opportunities for growth.

Career Growth

denotes the process of an individual’s professional progression through gaining skills, experiences, and responsibilities.

Collective Bargaining

Process of negotiation between management and union representatives.

Investor Relations

The department within a company tasked with managing communications and relationships with shareholders and the investment community.