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On 1 September 2015 Antique Furniture Importers Acquires Furniture from a Supplier

Question 23

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On 1 September 2015 Antique Furniture Importers acquires furniture from a supplier in Europe.The furniture is shipped f.o.b.from Brussels on 1 September 2015.The cost of the furniture is €500 000.The amount has not been paid at 30 September 2015.Exchange rates are as follows: 1 September 2015 A$1.00 =0.5230 September 2015 A$1.00 =0.58\begin{array} { | l | l | } \hline 1 \text { September } 2015 & \text { A\$1.00 } = € 0.52 \\\hline 30 \text { September } 2015 & \text { A\$1.00 } = € 0.58 \\\hline\end{array} What is the amount payable at 1 September and 30 September 2015in Australian dollars (rounded to the nearest whole A$) ?
Did the Australian dollar strengthen or weaken?


A)
1 September 2015$26000030 September 2015$290000\begin{array} { | l | l | } \hline 1 \text { September } 2015 & \$ 260000 \\\hline 30 \text { September } 2015 & \$ 290000 \\\hline\end{array} The Australian dollar weakened.
B)
 1 September 2015$104166730 September 2015$1190476\begin{array} { | l | l | } \hline \text { 1 September } 2015 & \$ 1041667 \\\hline 30 \text { September } 2015 & \$ 1190476 \\\hline\end{array} The Australian dollar strengthened.
C)
 1 September 2015$96153830 September 2015$862069\begin{array} { | l | l | } \hline \text { 1 September } 2015 & \$ 961538 \\\hline 30 \text { September } 2015 & \$ 862069 \\\hline\end{array} The Australian dollar strengthened.
D)
1 September 2015$24000030 September 2015$210000\begin{array} { | l | l | } \hline 1 \text { September } 2015 & \$ 240000 \\\hline 30 \text { September } 2015 & \$ 210000 \\\hline\end{array} The Australian dollar weakened.

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