Spindler, Incorporated a USbased company imports surfboards from a supplier in Brazil and sells them in the United States. Purchases are denominated in terms of the Brazilian real BRL During Spindler acquires surfboards at a price of BRL per surfboard, for a total of BRL Spindler will pay for the surfboards when it sells them. Relevant exchange rates are as follows:
Date US Dollar per Brazilian Real BRL
September $
December
December
March
Required:
Assume that Spindler acquired the surfboards on September and made payment on December What is the effect of the exchange rate fluctuations on reported income in
Assume that Spindler acquired the surfboards on December and made payment on March What is the effect of the exchange rate fluctuations on reported income in and
Assume that Spindler acquired the surfboards on September and made payment on March What is the effect of the exchange rate fluctuations on reported income in and in
