(SOLVED) Benjamin Inc operates an export import

business The company has considerable

Benjamin, Inc., operates an export/import business. The company has considerable dealings
with companies in the country of Camerrand. The denomination of all transactio
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import-business-the-company-has-considerable

Benjamin, Inc., operates an export/import business. The company has considerable dealings
with companies in the country of Camerrand. The denomination of all transactions with these
companies is alaries (AL), the Camerrand currency. During 2017, Benjamin acquires 20,000
widgets at a price of 8 alaries per widget. It will pay for them when it sells them. Currency
exchange rates for 1 AL are as follows:

September 1, 2017 .......................... $0.46

December 1, 2017 ........................... 0.44

December 31, 2017 ......................... 0.48

March 1, 2018 ............................... 0.45

a. Assume that Benjamin acquired the widgets on December 1, 2017, and made payment on
March 1, 2018. What is the effect of the exchange rate fluctuations on reported income in 2017
and in 2018?

b. Assume that Benjamin acquired the widgets on September 1, 2017, and made payment on
December 1, 2017. What is the effect of the exchange rate fluctuations on reported income in
2017?

c. Assume that Benjamin acquired the widgets on September 1, 2017, and made payment on
March 1, 2018. What is the effect of the exchange rate fluctuations on reported income in 2017
and in 2018?

Benjamin Inc operates an export import business The company has considerable
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import-business-the-company-has-considerable

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