Answer:
$929,404
Explanation:
The computation of amount that will be received is shown below:-
Once DeGraw Company sold heating station to a Japanese consumer at a price of 143,500,000 Yen, the exchange rate was $1 = 140 Yen.
$1 = 140 Yen
1 Yen = $1 ÷ 140
= $0.00714
DeGraw decided to make the bill payable in Yen after 6 months, when the exchange rate is
$1 = 154.4 Yen
1 Yen = 1 ÷ 154.4
= $0.006476
However the price paid is 143,500,000 Yen. Now, the exchange rate has fallen to 1 Yen = $0.006476
Therefore, the dollar amount that is decided by Degraw Corporation at the time of invoice is
1 Yen = $0.006476
143,500,000 Yen = X(Assume)
(143,500,000 × $0.006476) ÷ 1
= $929,404