Have the accountants made a mistake? Does the company have a
loss, a gain, or both from this forward contract?
Ahnuld Corporation, a health juice producer, recently expanded
its sales through exports to foreign markets. Earlier this year,
the company negotiated the sale of several thousand cases of turnip
juice to a retailer in the country of Tcheckia. The customer is
unwilling to assume the risk of having to pay in U.S. dollars.
Desperate to enter the Tcheckian market, the...