Sonny Boy Company plans to buy 20 units of flat screen, 60 inches TV set from Sony Philippines. The cash price is P25,000 per unit. Since Sonny Boy Company has no enough cash to pay the units upon delivery, it offers to pay in terms: 50% upon delivery and 50% 12 months after. Sony Philippines is amenable to the terms only if Sonny Boy Company accepts increased purchase price of P27,500. Sonny Boy accepts the condition and both parties also agreed on the right of returns within 90 days from date of delivery. The cost of one TV set is P18,000. All the 20 units were delivered by Sony and received the 50% partial payment. 2. Under IFRS 15, how much revenue from sales is recognized by Sony Philippines on the date of sale? P500,000 P550,000 a. с. P275,000 b. d. No revenue is recognized

Sonny Boy Company plans to buy 20 units of flat screen, 60 inches TV set from Sony Philippines. The cash price is P25,000 per unit. Since Sonny Boy Company has no enough cash to pay the units upon delivery, it offers to pay in terms: 50% upon delivery and 50% 12 months after. Sony Philippines is amenable to the terms only if Sonny Boy Company accepts increased purchase price of P27,500. Sonny Boy accepts the condition and both parties also agreed on the right of returns within 90 days from date of delivery. The cost of one TV set is P18,000. All the 20 units were delivered by Sony and received the 50% partial payment. 2. Under IFRS 15, how much revenue from sales is recognized by Sony Philippines on the date of sale? P500,000 P550,000 a. с. P275,000 b. d. No revenue is recognized

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter27: Multinational Financial Management

Section: Chapter Questions

Problem 11P: Boisjoly Watch Imports has agreed to purchase 15,000 Swiss watches for 1 million francs at today’s...

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Boisjoly Watch Imports has agreed to purchase 15,000 Swiss watches for 1 million francs at today’s spot rate. The firm’s financial manager, James Desreumaux, has noted the following current spot and forward rates: On the same day, Desreumaux agrees to purchase 15,000 more watches in 3 months at the same price of 1 million Swiss francs. What is the cost of the watches in U.S. dollars, if purchased at today’s spot rate? What is the cost in dollars of the second 15,000 batch if payment is made in 90 days and the spot rate at that time equals today’s 90-day forward rate? If the exchange rate for is 0.50 Swiss francs per dollar in 90 days, how much will Desreumaux have to pay (in dollars) for the watches?
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