Simpson Sign Company Based in Frostbite Falls, Minnesota Has a 6-Month

question 22

Multiple Choice

Simpson Sign Company based in Frostbite Falls, Minnesota has a 6-month C$100,000 contract to complete sign work in Winnipeg, Manitoba, Canada. The current spot rate is $1.02/C$ and the forward rate is $1.01/C$. Under conditions of equilibrium, management would use today ________ when preparing operating budgets.

• A) $102,000
• B) $101,000
• C) $100,000
• D) None of the above

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Definitions:

Day

The period of 24 hours from one midnight to the next, or the part of this period when it is light and which is distinguished from night.

SRY Gene

A gene on the Y chromosome responsible for initiating male sex determination in humans and most other mammals.

Master Gene

Gene encoding a product that affects the expression of many other genes.

Lactose

A disaccharide sugar composed of glucose and galactose, commonly found in milk and dairy products.