Suppose one year ago,Hein Company had inventory in Britain valued at 232,000 pounds.The exchange rate for dollars to pounds was 1£ = 2.00 U.S.dollars.This year the exchange rate is 1£ = 1.82 U.S.dollars.The inventory in Britain is still valued at 232,000 pounds.What is the U.S.dollar gain or loss in inventory value as a result of the change in exchange rates?
A) -$41,760.00
B) -$45,936.00
C) -$42,177.60
D) -$35,496.00
E) -$46,353.60

Question

Quizplus · Accepted Answer

The inventory value in U.S. dollars one year ago was 232,000 pounds * 2.00 USD/pound = 464,000 USD. This year, the value is 232,000 pounds * 1.82 USD/pound = 422,240 USD. The loss in value is 464,000 USD - 422,240 USD = 41,760 USD.

Suppose One Year Ago,Hein Company Had Inventory in Britain Valued