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Seminar in International Accounting Project 2017 Five people group should exchange o time for working on the project (weekly or more frequent is recommended). Please keep records of attendance of your group meetings Nadal company made purchases on account from three foreign suppliers on December 15, 2016, with payment 15 2017. Information related to these purch Supplier Price Beija Flor Ltda. ontact and decide meeting on January is as follows: Location Invoice Sao Paulo, 65,000 Brazilian reals razi Quetzala SA Guatemala Mariposa SA de CV Mexico Guatemala city 250,000 Guatemalan Quetzals Cancun, 400,000 Mexican pesos Nadal Company's fiscal year ends December 3 Required 1. Use historical exchange rate information available on the internet at www.oanda.com to find interbank exchange rates between the U.S. dollar and each foreign currency for the period December 15, 2016, to January 15, 2017 2. Assuming no hedging, determine the foreign exchange gains and losses that Nadal would have recognized in net income in 2016 and 2017, and the overall foreign exchange gain or loss for each transaction. Journalize the entries. Determine for which transaction it would have been most important for Nadal to hedge its Foreign exchange risk. 3. Nadal could have acquired a forward contract on December 15, 2016, to hedge the foreign exchange risk associated with each of the three import purchases. In each case, the forward contract would have had a forwards,pot rate 2% less than December 15, 2016 spot rate, prepare the cashflow hedge accounting journal entries for the transaction related to Beija Flor Ltda. (please read p356- 359 for hedge accounting of this specific categ transaction)

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