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On 1 January 2014 Antique Furniture Importers Acquires Furniture from a Supplier

Question 40

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On 1 January 2014 Antique Furniture Importers acquires furniture from a supplier in Europe.The furniture is shipped f.o.b.from Brussels on 1 January 2014.The cost of the furniture is €600 000.The amount has not been paid at 31 January 2014.Exchange rates are as follows: 1 January 2014 A$1.00 =0.5931 January 2014 A$1.00 =0.46\begin{array} { | l | l | } \hline 1 \text { January } 2014 & \text { A\$1.00 } = € 0.59 \\\hline 31 \text { January } 2014 & \text { A\$1.00 } = € 0.46 \\\hline\end{array} What is the amount payable at 1 January and 31 January 2014 in Australian dollars (rounded to the nearest whole A$) ?
Did the Australian dollar strengthen or weaken?


A)
 1 January 2014$1016949 31 January 2014$1304348\begin{array} { | l | l | } \hline \text { 1 January } 2014 & \$ 1016949 \\\hline \text { 31 January } 2014 & \$ 1304348 \\\hline\end{array} The Australian dollar weakened.
B)
 1 January 2014$246000 31 January 2014$324000\begin{array} { | l | l | } \hline \text { 1 January } 2014 & \$ 246000 \\\hline \text { 31 January } 2014 & \$ 324000 \\\hline\end{array} The Australian dollar strengthened.
C)
 1 January 2014$1463415 31 January 2014$1111111\begin{array} { | l | l | } \hline \text { 1 January } 2014 & \$ 1463415 \\\hline \text { 31 January } 2014 & \$ 1111111 \\\hline\end{array} The Australian dollar weakened.
D)
 1 January 2014$354000 31 January 2014$276000\begin{array} { | l | l | } \hline \text { 1 January } 2014 & \$ 354000 \\\hline \text { 31 January } 2014 & \$ 276000 \\\hline\end{array} The Australian dollar strengthened.

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