On December 1, 2013, a US firm plans to sell a piece of equipment [with asking price of 200,000 units of a foreign currency (FC)] during January of 2014. The transaction is probable. The company enters into a forward contract on December 1, 2013 to sell 200,000 FC on February 1, 2014 for $1.02. Spot rates and the forwards rates for January 31, 2014, settlement were as follows (dollars per euro):

Spot Rate Forward rate for 2/1/14

December 1, 2013 $1.04 $1.02

Balance sheet date (12/31/2013) $1.01 $1.00

January 31 and February 1, 2014 $0.99

On January 31, 2014, the equipment was sold for 200,000 FC. The cost of the equipment is $170,000. The US company has an incremental borrowing rate of 12% per year.

Required:

1. Record the journal entries needed on December 1 and December 31, 2013, January 31, and February 1, 2014. Round all entries to the nearest whole dollar (10 points)

2. Answer the following questions:

a. Indicate the amount of the discount or premium at which the foreign currency was originally sold in the foreign currency market (1 point)

b. What is the net impact on December 31, 2013 Stockholder equity related to this transaction? (1 point)

c. What is the accumulated net impact at February 1, 2014 on Stockholder equity related to this transaction? (1 point)

d. What would have been the net impact on December, 31 2013 Stockholder equity related to this transaction if the US company had never entered the Forward Contract? (1 point)

e. What would have been the accumulated net impact on the US company’s Stockholder equity related to this transaction at February 1, 2014 if the US company had never entered the Forward Contract? Was the US company better- or worst off with the derivative contract? (1 point)

A US company enters into a currency swap in which pays a fixed rate of in euros and the counterparty pays a fixed rate of in dollars. The notional principals are $million and] million. Payments are made semi-annually and on the basis of 30 days per month and 360 days per year.

For the initial exchange of payments that take place at the beginning of the swap, is the US company paying USD or EURO to the counterparty? [Type in USD or EURO in the answer box]

My MBA Thesis Topic : The Impact of block chain technology on financial market

Could you please recommend an overview bullet points for my Methodology Part ( Road Plan to work on )

and can you please recommend some questions to ask while working on the data analysis part ( my data collection technique would be interviews )

MBA, spring 2020

Assignment 7

Topic: Logistic Management:

Your task is simple and exploratory: come up with a max. 1000 words write up that covers following:

Autonomous Truck & Drones: how play important roles in logistic management and that are impacting a particular facet of Logistics Management. Write a maximum 1000 words analysis.

After MBA course, you have come to realize that most businesses in Ghana and Africa fail not because of capital adequacy issues but rather, human resources management issues. What significant expectations would you give to all HR managers as needed competences to be equipped with if you are the consultant general to businesses in Ghana? Discuss these factors or requirements

What set of standards does a company use when it operates in multiple countries? For example, for a US company, can they use both GAAP and IFRS? Do they need to choose one?

Excell Computers promptly shipped two servers to its biggest client. The company profits RM5,000 on each one of these big systems. The shipping worker randomly selected the system without replacement that were delivered from 15 computers in stock. The system contain 4 refurbished computer, with 11 new computers in the warehouse.

If the client gets two new computers, Excell earns RM10,000 profit. If the client gets a refurbished computer, it’s coming back for replacement and Excell must pay the RM400 shipping fee, with leaves RM9,600 profit. If both computers shipped are refurbished, consequently the client will return both and cancel the order. As a result, Excell will be out any profit and left with RM8,000 in shipping cost. Let X be a random variable for the amount of the profit earned on the order.

a. Illustrate the event.                                                

b. Construct a probability distribution table and the amount of profit earned for the computer condition.

c. Calculate the expected profit then interpret the value.    

Excell Computers promptly shipped two servers to its biggest client. The company profits RM5,000 on each one of these big systems. The shipping worker randomly selected the system without replacement that were delivered from 15 computers in stock. The system contain 4 refurbished computer, with 11 new computers in the warehouse.

If the client gets two new computers, Excell earns RM10,000 profit. If the client gets a refurbished computer, it’s coming back for replacement and Excell must pay the RM400 shipping fee, with leaves RM9,600 profit. If both computers shipped are refurbished, consequently the client will return both and cancel the order. As a result, Excell will be out any profit and left with RM8,000 in shipping cost. Let X be a random variable for the amount of the profit earned on the order.

a. Illustrate the event.                                                

b. Construct a probability distribution table and the amount of profit earned for the computer condition.

c. Calculate the expected profit then interpret the value.    

Excell Computers promptly shipped two servers to its biggest client. The company profits RM5,000 on each one of these big systems. The shipping worker randomly selected the system without replacement that were delivered from 15 computers in stock. The system contain 4 refurbished computer, with 11 new computers in the warehouse.

If the client gets two new computers, Excell earns RM10,000 profit. If the client gets a refurbished computer, it’s coming back for replacement and Excell must pay the RM400 shipping fee, with leaves RM9,600 profit. If both computers shipped are refurbished, consequently the client will return both and cancel the order. As a result, Excell will be out any profit and left with RM8,000 in shipping cost. Let X be a random variable for the amount of the profit earned on the order.

a. Illustrate the event.                                                

b. Construct a probability distribution table and the amount of profit earned for the computer condition.

c. Calculate the expected profit then interpret the value.