Question

In: Accounting

what is the effect of fluctuating dollar has on its profits for the last twelve months....

what is the effect of fluctuating dollar has on its profits for the last twelve months. Use a graph to illustrate the fluctuations against the foreign currency

can you please add source from which you are answering the question !

dollars vs Euro and Japanese Yen

Solutions

Expert Solution

The effect of fluctuation on profits is shown below in chart:

Months Exchange Rate
Dollar Vs Euro Dollar Vs Yen
Jul-19 1.1285 108.2964
Aug-19 1.1079 107.4669
Sep-19 1.0992 106.1237
Oct-19 1.0932 107.7368
Nov-19 1.1168 108.2020
Dec-19 1.1017 109.5618
Jan-20 1.1165 107.9284
Feb-20 1.1095 108.3917
Mar-20 1.1051 107.4345
Apr-20 1.0956 107.1719
May-20 1.1091 106.9301
Jun-20 1.1132 107.5859

If dollar rises against the another currency then

In case of export the profit will rise

In case of import the profit will fall

If dollar falls against another currency then

In case of export the profit will fall

In case of import the profit will rise


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