A U.S. company's foreign subsidiary had the following amounts in stickles (5), the functional currency, in 2018: $12,000,e00 600,000 240, eee Cost of goods sold Ending inventory Beginning inventory The average exchange rate during 2018 was §1 = S.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 = S.90. The exchange rate at December 31, 2018 was §1= $.84. Assuming that the foreign nation for the subsidiary had a highly inflationary economy, at what amount should that foreign subsidiary's purchases have been reflected in the 2018 U.S. dollar income statement? Multiple Cholce $11,865,600. $11,577,600. $11,520,000. $11,613,600.

A U.S. company's foreign subsidiary had the following amounts in stickles (5), the functional currency, in 2018: $12,000,e00 600,000 240, eee Cost of goods sold Ending inventory Beginning inventory The average exchange rate during 2018 was §1 = S.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 = S.90. The exchange rate at December 31, 2018 was §1= $.84. Assuming that the foreign nation for the subsidiary had a highly inflationary economy, at what amount should that foreign subsidiary's purchases have been reflected in the 2018 U.S. dollar income statement? Multiple Cholce $11,865,600. $11,577,600. $11,520,000. $11,613,600.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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