On December 1, 2001 Pimlico made sales to a customer in India and recorded Accounts Receivable of 10,000,000 rupees. The customer has until March 1, 2002 to pay. On December 1, 2001, Pimlico paid $500 for a put option to sell rupees at a strike price of $2.30 per 100 rupees on March 1, 2002, which was the spot rate on December 1, 2001. On December 31, 2001, the spot rate was $2.80 per 100 rupees and the option premium was $0.004 per 100 rupees.

What is the fair value of the option on December 1, 20x1?

a. $0
b. $500
c. $400
d. $10,000

What is the fair value of the option on December 31, 20x1?

a. $0
b. $500
c. $400
d. $10,000

What is the foreign currency exchange gain or loss on December 31, 20x1?

a. $50,000 loss
b. $50,000 gain
c. $10,000 gain
d. $10,000 loss

If the spot rate on March 1, 20x2 was $2.45 per 100 rupees, what is the foreign currency exchange gain or loss that should be recorded that day?

a. $15,000 gain
b. $15,000 loss
c. $35,000 gain
d. $35,000 loss

Exercise 12-7 shown below are comparative balance sheets for flint corporation. flint corporation comparative balance sheets december 31 assets 2017 2016 cash $ 201,348 $ 65,142 accounts receivable 260,568 225,036 inventory 494,487 559,629 land 236,880 296,100 equipment 769,860 592,200 accumulated depreciation—equipment (195,426 ) (94,752 ) total $1,767,717 $1,643,355 liabilities and stockholders’ equity accounts payable $ 115,479 $ 127,323 bonds payable 444,150 592,200 common stock ($1 par) 639,576 515,214 retained earnings 568,512 408,618 total $1,767,717 $1,643,355 additional information: 1. net income for 2017 was $275,373. 2. depreciation expense was $100,674. 3. cash dividends of $115,479 were declared and paid. 4. bonds payable amounting to $148,050 were redeemed for cash $148,050. 5. common stock was issued for $124,362 cash. 6. no equipment was sold during 2017. 7. land was sold for its book value. prepare a statement of cash flows for 2017 using the indirect method.

Using an organization with which you are familiar, identify its corporate culture and the elements of its observable culture. what do you think would need change in order to facilitate innovation? what role would organizational development play in overcoming resistance to change?

Receiving payment prior to delivering goods or services causes a current liability to be incurred. true