Voltac Corporation (a U.S. company located in Charlotte, North Carolina) has the following import/export transactions denominated in Mexican pesos in 2017: March 1 Bought inventory costing 108,000 pesos on credit. May 1 Sold 70 percent of the inventory for 88,000 pesos on credit. August 1 Collected 74,000 pesos from customers. September 1 Paid 64,000 pesos to suppliers. Currency exchange rates for 1 peso for 2017 are as follows: March 1 $0.17 May 1 0.18 August 1 0.19 September 1 0.20 December 31 0.21 Assume that all receipts were converted into dollars as soon as they were received. For each of the following accounts, how much will Voltac report on its 2017 financial statements? a.inventory b. cost of goods sold c. sales d. accounts receivable e. accounts payable f. cash

Voltac Corporation (a U.S. company located in Charlotte, North Carolina) has the following import/export transactions denominated in Mexican pesos in 2017: March 1 Bought inventory costing 108,000 pesos on credit. May 1 Sold 70 percent of the inventory for 88,000 pesos on credit. August 1 Collected 74,000 pesos from customers. September 1 Paid 64,000 pesos to suppliers. Currency exchange rates for 1 peso for 2017 are as follows: March 1 $0.17 May 1 0.18 August 1 0.19 September 1 0.20 December 31 0.21 Assume that all receipts were converted into dollars as soon as they were received. For each of the following accounts, how much will Voltac report on its 2017 financial statements? a.inventory b. cost of goods sold c. sales d. accounts receivable e. accounts payable f. cash

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter9: Taxation Of International Transactions

Section: Chapter Questions

Problem 27P

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Question

Voltac Corporation (a U.S. company located in Charlotte, North Carolina) has the following import/export transactions denominated in Mexican pesos in 2017:

March 1	Bought inventory costing 108,000 pesos on credit.
May 1	Sold 70 percent of the inventory for 88,000 pesos on credit.
August 1	Collected 74,000 pesos from customers.
September 1	Paid 64,000 pesos to suppliers.

Currency exchange rates for 1 peso for 2017 are as follows:

March 1 $0.17

May 1 0.18

August 1 0.19

September 1 0.20

December 31 0.21

Assume that all receipts were converted into dollars as soon as they were received.

For each of the following accounts, how much will Voltac report on its 2017 financial statements?

a.inventory

b. cost of goods sold

c. sales

d. accounts receivable

e. accounts payable

f. cash

Definition Definition Money that the business will be receiving from its clients who have utilized the credit provided to buy its goods and services. The credit period typically lasts for a short term, lasting from a few days, a few months, to a year.

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