Packaged software producers create software such as:

On 4/1/18, a U.S. Company commits to sell a piece of equipment to a French customer. At that time, the U.S. company enters into a forward contract to sell foreign currency on 8/1/18 (120 days)

Delivery will take place 7/1/18 with payment due on 8/1/18 . The fiscal year end for the company is 6/30/18 . The sales price of the equipment is 200,000 Euros. Various exchange rates are as follows: Spot Forward 4/1/18 1FC = $0.60 1FC = $0.58 6/30/18 and 7/1/18 1FC = $0.58 1FC = $0.56 8/1/18 1FC = $0.55 1FC = $0.55 Discount rate is 12%. What is the value of Forward Contract on 6/30? a. 4,000 debit b. 3,960 debit c. 4,000 credit d. 3,960 credit

Which of the following is/are false?

a. Firms do not necessarily recognize revenues when they receive cash b. Firms do not necessarily recognize expenses when they disburse cash. c. Net income will not necessarily equal cash flow from operations each period. d. A profitable firm will likely borrow funds in order to remain in business, but eventually operations must generate cash to repay the borrowing. e. None of the above are false