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Assume That RadCo International Purchases Ski Equipment on Account from a German

question 25

Multiple Choice

Assume that RadCo International purchases ski equipment on account from a German exporter on October 1 and that the sale is denominated in 500,000 German marks. RadCo closes its books at the end of each month, and the payable is due on November 15. The following are the relevant exchange rates.
 Spot rate on October 1 $0.5939 Forward rate for Nov 15 delivery $0.5945 Spot rate on October 31 $0.5948 Spot rate on Nov 15  S0.5941  \begin{array}{lr}\text { Spot rate on October 1 } & \$ 0.5939 \\ \text { Forward rate for Nov 15 delivery } & \$ 0.5945 \\ \text { Spot rate on October 31 } & \$ 0.5948 \\ \text { Spot rate on Nov 15 } & \text { S0.5941 }\end{array}

Questions 34-38 assumes the treatment of FASB Statement 52 and that no forward contract is entered into.
-What is the dollar value of purchases on October 31?

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