Lion Corporation, a U $$\begin{array} { l c c } & \text { Spot } & \text { Forward } \\\hline 6 / 1 & \$ 0.53 & \$ 0.60 \\6 / 30 & \$ 0.54 & \$ 0.58\end{array}$$

question 7

Essay

Lion Corporation, a U.S.firm, entered into several foreign currency transactions during the year.Determine the effect of each transaction on net income for that current accounting year only.Lion has a June 30 year end.
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Required:
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a.On January 15, Lion sold $30,000 (Canadian) in merchandise to a Canadian firm, to be paid for on February 15 in Canadian dollars.Canadian dollars were worth $0.85 (U.S.) on January 15 and $0.82 (U.S.) on February 15.?
b.On June 1, Lion purchased and received a computer costing 100,000 euros from a German firm.Lion paid for the computer on August 1.On June 1, to reduce exchange risks, Lion purchased a contract to buy 100,000 marks in 60 days.Exchange rates are as follows:
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$$\begin{array} { l c c } & \text { Spot } & \text { Forward } \\\hline 6 / 1 & \$ 0.53 & \$ 0.60 \\6 / 30 & \$ 0.54 & \$ 0.58\end{array}$$ Discount rate = 6%
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c.On June 1, Lion sold merchandise to a customer for 100,000 FC and purchased an option to sell 100,000 FC in 60 days to hedge the receivable.The option sold for a premium of $6,500 and a strike price of $1.20.The value of the option 6/30 was $12,500.The spot rate on June 1 was $1.19 and $1.25 on June 30.

Recognize the importance of preparation in strong negotiation.

Describe the ideal content and structure of a group sales presentation, including proposal documents.

Explain the significance of excluding price from a proposal document in group presentations.

Understand the importance of adapting sales presentations to the behavioral style of the group.

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Definitions:

Learned Ways

The behaviors, skills, or norms that are acquired through observation, instruction, and experience within a society or group.

Psychology

The scientific study of the mind and behavior, exploring various aspects of conscious and unconscious experience as well as thought and emotion.

Culture

The shared values, beliefs, behaviors, and artifacts that the members of a society use to cope with their world and with one another, and that are transmitted from generation to generation through learning.

Aversive Racists

Individuals who profess egalitarian values yet possess negative feelings and beliefs towards a racial group subconsciously.