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On May 1,2014,Deerfield Corporation Purchased Merchandise from a German Firm

question 26

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On May 1,2014,Deerfield Corporation purchased merchandise from a German firm for 78,000 euros when the spot rate for the euro was 1.48 euro per dollar.The account payable was denominated in the euro.Deerfield settled the account on August 1 when the spot rate for the euro was 1.39 euro per dollar.How much cash will Deerfield have to disburse to settle the account?


Definitions:

Collagen Fibers

Strong, flexible protein fibers that form the supportive framework of connective tissues in the body, including skin, bone, and cartilage.

Semifluid Matrix

A viscous, semi-liquid substance found within various biological systems, such as the cytoplasm of a cell, providing a medium for cellular processes.

Dermis

The layer of dense connective tissue beneath the epidermis in the skin of vertebrates.

Digestive Tract

A continuous, hollow passage starting from the mouth to the anus through which food is ingested, digested, absorbed, and waste material expelled.

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