Pigskin co., a u. s. corporation, sold inventory on credit to a british company on april 8, 2018. pigskin received payment of 35,000 british pounds on may 8, 2018. the exchange rate was £1 = $1.54 on april 8 and £1 = 1.43 on may 8. what amount of foreign exchange gain or loss should be recognized? (round to the nearest dollar)

Loss of $3850 should be recognized.

Explanation:

Given:

Payment received on April 8,2018 = 35,000 British pounds

The exchange rate on April 8, £1 = $1.54

The exchange rate on May 8, 2018 , £1 = $1.43

Now,

The value of payment received on April 8, 2018 in Dollars

= Exchange rates on April 8, 2018 × Payment received

on substituting the respective values, we get

= $1.54 × 35,000 = $53,900

Also,

The  value of payment received on May 8, 2018 in Dollars

= Exchange rates on May 8, 2018 × Payment received

on substituting the respective values, we get

= $1.43 × 35,000 = $50,050

Since, the value received on May 8, 2018 is less than the value in Dollars on the date of the sale, a loss should be recognized in the amount of the foreign exchange.

Now,

the amount of loss

= Value in Dollars on April 8, 2018 -  Value in Dollars on May 8, 2018

on substituting the respective values, we get

the amount of loss = $53,900 - $50,050 = $3850

a manufacturer of printed circuit boards uses exponential smoothing with trend to forecast monthly demand of its product. at the end of december, the company wishes to forecast sales for january. the estimate of trend through november has been 200 additional boards sold per month. average sales have been around 1000 units per month. the demand for december was 1100 units. the company uses α = 0.20 and β = 0.10. make a forecast including trend for the month of january.

answer the amount a seller is paid minus the cost of production;