On June 1, Johnson, Inc. received an order from a Japanese customer for 2,500,000 yen to be paid upon receipt of the goods, scheduled for August 1. The rates for $1 US are as follows:
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Exchange Rates for $1 forYen
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Spot rate, June 1
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83
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Forward rate, August 1
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82
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Spot rate, August 1
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81
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(a) Calculate what Johnson would receive from the Japanese customer in US dollars using the spot rate at the time of the order.
(b) Calculate what Johnson would receive from the Japanese customer in US dollars using the spot rate at the time of payment.