A U.S. company's foreign subsidiary had the following amounts in stickles (), the functional currency, in 2013:
Question:
A U.S. company's foreign subsidiary had the following amounts in stickles (§), the functional currency, in 2013: The average exchange rate during 2013 was §1 = $.96. The beginning inventory was acquired when the exchange rate was §1 = $1.20. The ending inventory was acquired when the exchange rate was §1 = $.90. The exchange rate at December 31, 2013 was §1 = $.84. At what amount should the foreign subsidiary's cost of goods sold have been reflected in the 2013 U.S. dollar income statement?
A. $11,253,600.
B. $11,577,600.
C. $11,520,000.
D. $11,613,600.
E. $11,523,600.
At what amount should that foreign subsidiary's purchases have been reflected in the 2013 USD income statement?
A. $11,865,600
B. $11,577,600
C. $11,520,000
D. $11,613,600
E. $11,523,600
Principles of Accounting
ISBN: 978-1133626985
12th edition
Authors: Belverd E. Needles, Marian Powers and Susan V. Crosson