On December 1, 2021, Keenan Company, a U.S. firm, sold merchandise to Velez Company of Canada for 150,000 Canadian dollars (CAD). Collection of the receivable is due on February 1, 2022. Keenan purchased a foreign currency put option with a strike price of $0.97 (U.S.) on December 1, 2021. This foreign currency option is designated as a cash flow hedge. Relevant exchange rates follow:

Date Spot Rate Option Premium
1-Dec-18 $0.97 $0.05
31-Dec-18 $0.95 $0.04
1-Feb-19 $0.94 $0.03

Required:
Compute the fair value of the foreign currency option at February 1.

Answer:

Keenan Company (U.S.) and Velez Company (Canada)

The fair value of the foreign currency option at February 1 = $4,500.

Explanation:

a) Data and Calculations:

Value of merchandise sold to Velez Company = CAD 150,000

Collection date of the receivable = February 1, 2022

Strike price of foreign currency put option purchased by Keenan = US$0.97

Relevant exchange rates follow:

Date        Spot Rate   Option Premium

1-Dec-21       $0.97          $0.05

31-Dec-21    $0.95          $0.04

1-Feb-22      $0.94         $0.03

The fair value of the option is based on the the change that has occurred in the Spot Rates from December 1, 2021 to February = $0.03 ($0.97 - $0.94)

Therefore, the fair value = 150,000 * $0.03 = $4,500

Samuelson Electronics has a required payback period of 4 years for all of its projects. Currently, the firm is analyzing two independent projects. Project A has an expected payback period of 3.1 years and a net present value of $42,000. Project B has an expected payback period of 4.1 years with a net present value of $2,640. Which project(s) should be accepted based on the payback decision rule?

somebody help pls name two business ethics that the Snack Corner failed to adhere to.​

Match each capital budgeting method with its definition. METHODS 1. Accounting rate of return 2. Internal rate of return 3. Net present value 4. Payback Definition Capital Budgeting Method a. Is only concerned with the time it takes to get cash outflows returned b. Considers operating income but not the time value of money in its analyses c. Compares the present value of cash outflows to the present value of cash inflows to determine investment worthiness d. The true rate of return an investment earns

d. If money demand does not depend on the interest rate, the LM curve is vertical. True False e. If money demand does not depend on income, the LM curve is horizontal. True False f. If money demand is extremely sensitive to the interest rate, the LM curve is horizontal. True False g. Suppose the government wants to change the level of output. If the LM curve is horizontal, then fiscal policy is completely ineffective, whereas monetary policy is highly effective. monetary policy

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Explain with examples, the process of screening and evaluating new venture opportunities.

The world price of a liter of vodka is$7.00. While the distillation is done domestically, some of the grainsand materials for the bottle are imported. The value of imported components is$2.00. Assume that thereis no tariff on imported components used to make vodka.a) (1 points) What is the NRP for vodka if there is a tariff of$3.00

Select the correct answer.
Which of these trainings does the hospitality certification provide?
OA. ensures the safety of the food served
OB. safely serve alcohol to other individuals
OC. food has been produced and handled according to the recognized standards
OD. create the ultimate experience

Short Answer: A marketing specialist needed to find a new way of marketing the company's main product to its potential clients. While watching a movie one evening, the marketing specialist saw a scene that gave her some novel thoughts for a new marketing plan. According to the creative process model, which is the stage in the creative process, which is the stage before this, and which is the stage after this

Identify which of the following statements is true. Group of answer choices All of the above are false. If a C corporation does not distribute its income to its shareholders annually, double taxation cannot occur. C corporation operating losses are deductible by the individual shareholders. Capital losses incurred by a C corporation can be used to offset the corporation's ordinary income.

How long does your credit report keep track your credit history?
O 5 Years
O 10 Years
O 20 Years
O It lasts your life time

Pension data for Coda Corporation included the following for the current calendar year: Service cost $ 112,000 PBO, January 1 810,000 Plan assets, January 1 860,000 Amortization of prior service cost 6,600 Amortization of net loss 2,600 Discount rate, 8% Expected return on plan assets, 10% Actual return on plan assets, 12% Required: Determine pension expense for the year. (Amounts to be deducted should be indicated with a minus sign.)

Select the correct answer.

In terms of market research, which statement describes an advantage for businesses?

O Market research agencies always collect accurate market information, regardless of their client's guidance.

O Secondary sources are inexpensive and can meet any business's market research needs.

O Primary research methods, such as interviews, are highly reliable because respondents always give their honest opinions.

A business can explore new market opportunities with the help of accurate market research data.

Submit

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a. We are sorry to tell you that we cannot ship our hand-dipped chocolate-covered fresh strawberries c.o.d. Your order was not accompanied by payment, so we are not shipping it. We have it ready, though, and will rush it to its destination as soon as you call us with your credit card number.
b. Unfortunately, we find it impossible to contribute to your excellent and worthwhile fund-raising campaign this year. At present all the funds of our organization are needed to lease equipment and offices for our new branch in Scottsdale. We hope to be able to support this commendable endeavor in the future.
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Money serves three functions in the economy: medium of exchange, unit of account, and store of value.
For each of the following statements about inflation, indicate which function of money inflation is hindering.
Statement Store of value Unit of account Medium of exchange
Inflation erodes money's purchasing power.
Inflation causes menu costs.
In some countries with hyperinflation, prices are posted in terms of U.S. dollars rather than the local currency, even though the local currency is still used to purchase the good.

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A prospective employer reviews an applicant's work history and personal references. In
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Fultz Company has accumulated the following budget data for the year 2020.

1. Sales: 31,480 units, unit selling price $89.
2. Cost of one unit of finished goods: direct materials 1 pound at $5 per pound, direct labor 3 hours at $12 per hour, and manufacturing overhead $6 per direct labor hour.
3. Inventories (raw materials only): beginning, 10,270 pounds; ending, 15,380 pounds.
4. Selling and administrative expenses: $170,000; interest expense: $30,000.
5. Income taxes: 30% of income before income taxes.

Required:
a. Prepare a schedule showing the computation of cost of goods sold for 2020.
b. Prepare a budgeted multiple-step income statement for 2020.

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Strawberry Vanilla Chocolate
Direct labor (per 1,000 gallons) $766 $841 $1,141
Raw materials (per 1,000 gallons) 816 516 616
Requirement 1:
If the number of hours of labor per 1,000 gallons is 60 for strawberry, 70 for vanilla, and 100 for chocolate, compute the total cost of 1,000 gallons of each flavor using plantwide allocation.
Total cost
Strawberry $1,702
Vanilla $1,497
Chocolate $1,957
Requirement 2:
Charlene's department uses older, outdated machines. She believes that her department is being allocated some of the overhead of Department SV, which recently bought state-of-the-art machines. After she requested that overhead costs be broken down by department, the following information was discovered:
Department SV Department C
Overhead $88,760 $915
Machine-hours 25,360 37,600
Labor-hours 25,360 18,300
Using machine-hours as the department allocation base for Department SV and labor-hours as the department allocation base for Department C, compute the allocation rate for each.
Allocation rate
Department SV $3.50
Department C $0.05
Requirement 3:
Compute the cost of 1,000 gallons of each flavor of ice cream using the department allocation rates computed in requirement 2 if the number of machine-hours for 1,000 gallons of each of the three flavors of ice cream are as follows: strawberry, 60; vanilla, 70; and chocolate, 166. Direct labor hours by product remain the same as in requirement 1.
Requirement 4:
A) Was Charlene correct in her belief?
B) Department allocation generally yields more accurate product cost information.
1) True
2) False

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