Problem:
Bom Company had inventory in Britain valued at 240,000 pounds one year ago. The exchange rate for dollars to pounds was 1£ = 2 U.S. dollars. This year the exchange rate is 1£ = 1.82 U.S. dollars. The inventory in Britain is still valued at 240,000 pounds.
Required:
Question: What is the gain or loss in inventory value in U.S. dollars as a result of the change in exchange rates?
Note: Explain all calculation and formulas.