Assume That Lewis International Sells Running Shoes to a British

question 37

Multiple Choice

Assume that Lewis International sells running shoes to a British importer on June 1 and that the sale is denominated at £75,000 and will be collected on July 15. Also assume that Lewis closes its books at the end of each month. The following are the relevant exchange rates.
$\begin{array}{ll}\text { Spot rate on June 1 } & \$ 1.6200 \\ \text { Forward rate for July } & \\ \text { 15 delivery } & \$ 1.6000 \\ \text { Spot rate on June 30 } & \$ 1.6100 \\ \text { Spot rate on July 15 } & \$ 1.5950\end{array}$

For questions 25-29, assume FASB Statement 52 treatment and that Lewis enters into a forward contract.
-What is the dollar value of the sale on July 15?

• A) $120,750
• B) $120,000
• C) $119,625
• D) $121,500

---

Definitions:

Low Costs

Refers to strategies or measures implemented to reduce expenses and financial outlays in order to achieve better efficiency or increase profitability.

Crowdfunding

The act of financing a venture or project by collecting small amounts of money from numerous people, often through an online platform.

Marketing

A method of putting the right product in the right place, at the right price, at the right time.

Level of Interest

The degree of curiosity, concern, or attention someone has in a particular subject or activity.