You have been tracking your foreign currency investments over the past few weeks, noting changes and analyzing potential impacts. Now that your investment
period is over, you must create your analysis for management. Consider several aspects in analyzing investment performance.
Specifically, the following critical elements must be addressed:
I. Investment Selection: Explain the foreign currency investments you chose, the amounts invested, and your reasons for selection. For example, what
market trend indicated that these investments would benefit your organization?
II. Gains and Losses: Calculate and explain the gains and losses in terms of the foreign currencies and in U.S. dollars.
III. Currency Translation: Explain the impact of the translation to foreign currency and retranslation to domestic currency at the end of the investment
period, on the gains and losses.
IV. Value of Transactions: In your opinion, why would management decide that investing in foreign currencies was a strategy appropriate for the surplus
cash? What is the value and impact of such transactions on an organization? Be sure to cite any sources you may use for support.