Clark Stone purchases raw material from its fore…

            Clark Stone purchases raw material from its foreign supplier, Rinne Clay, on May 8. Payment of 1,500,000 foreign currency units (FC) is due in 30 days. May 31 is Clark’s fiscal year-end. The pertinent exchange rates were as follows:             May 8 Spot rate: $ 1.16   May 31 Spot rate: $ 1.18   June 7 Spot rate: $ 1.12     How much US $ will it cost Clark to finally pay the payable on June 7?                         A)    $1,850,000.                     B)    $1,500,000.            C)    $1,770,000.            D)    $1,740,000.            E)    $1,680,000.

Jackson Corp. (a U.S.-based company) sold parts to a Korean…

Jackson Corp. (a U.S.-based company) sold parts to a Korean customer on December 16, 2021, with payment of 20 million Korean won to be received on January 15, 2022. The following exchange rates applied:   Date Spot Rate Forward Rate to Jan.15 December 16, 2021 $ 0.00082   $ 0.00089   December 31, 2021   0.00080     0.00083   January 15, 2022   0.00086     0.00086     Assuming a forward contract was not entered into, what would be the net impact on Jackson Corp.’s 2021 income statement related to this transaction?                         A)    $600 (gain).                     B)    $600 (loss).            C)    $400 (gain).            D)    $400 (loss).            E)    $0