Rosario Companys International Division reported the following results: The constant currency growth rate for 20X2 represents what
Question:
Rosario Company’s International Division reported the following results:
The constant currency growth rate for 20X2 represents what the year-over-year sales growth versus 20X1 would have been if exchange rates had not changed from 20X1 to 20X2. Similarly, the constant currency growth rate for 20X1 represents what the year-over-year sales growth versus 20X0 would have been if exchange rates had not changed from 20X0 to 20X1.
Required:
1. In what direction did the values of foreign currencies in countries in which Rosario operates fluctuate, on average, relative to the U.S. dollar from 20X0 to 20X1? Explain.
2. In what direction did the values of foreign currencies in countries in which Rosario operates fluctuate, on average, relative to the U.S. dollar from 20X1 to 20X2? Explain.
Step by Step Answer:
Financial Reporting And Analysis
ISBN: 9781260247848
8th Edition
Authors: Lawrence Revsine, Daniel Collins, Bruce Johnson, Fred Mittelstaedt, Leonard Soffer