On March 1, 2013, Eddie Ltd Assume That the Transaction Qualifies as a Cash Flow Hedge

question 45

Multiple Choice

On March 1, 2013, Eddie Ltd. issued a purchase order to Liu Inc. to acquire a crane for $400,000 SGD. On the same day, Eddie entered into a forward contract to receive $400,000 SGD on July 31, 2013. The crane was delivered on June 1, 2013 and payment was made July 31, 2013. Eddie has an April 30 year-end. The following information has been provided: $\begin{array}{|l|c|c|}\hline\text { Date } & \text { Spot Rate } & \frac{\text { Forward rate to July 31 }}{2013} \\\hline \text { March } 1,2013 & .7686 & .7810 \\\hline \text { Apri1 } 30,2013 & .7702 & .7818 \\\hline \text { June } 1,2013 & .7940 & .7985 \\\hline \text { July } 31,2013 & .7995 & \mathrm{n} / \mathrm{a} \\\hline\end{array}$ Assume that the transaction qualifies as a cash flow hedge. On March 1, at what amount should the forward contract be reported?

• A)$312,400
• B)$317,600
• C)$0
• D)$319,800

Recognize different motivations and methodologies behind weightlifting and physical fitness regimes.

Understand the organizational structure of a well-developed essay.

Critically assess the effectiveness of community service in improving quality of life.

Analyze the comparison and contrast between two different lifestyles or childhoods.

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Definitions:

Critical Thinking Skill

The ability to actively and skillfully conceptualize, apply, analyze, synthesize, and evaluate information to reach an answer or conclusion.

Disinformation

Disinformation is false information that is deliberately spread with the intention of deceiving or misleading others.

Propaganda

Information, especially of a biased or misleading nature, used to promote or publicize a particular political cause or point of view.

Spin

A form of propaganda achieved through providing a biased interpretation of an event or campaigning to persuade public opinion in favor or against some organization or public figure.