A US Company's Foreign Subsidiary Had the Following Amounts in Stickles

question 37

Multiple Choice

A U.S. company's foreign subsidiary had the following amounts in stickles (§) , the functional currency, in 2013: $\begin{array}{lr}\text { Cost of goods sold } & \S 12,000,000 \\\text { Ending inventory } & 600,000 \\\text { Beginning inventory } & 240,000\end{array}$ 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. 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 2013 U.S. dollar income statement?

• A)$11,865,600.
• B)$11,577,600.
• C)$11,520,000.
• D)$11,613,600.
• E)$11,523,600.

---

Definitions:

Information Search

Information search is the process by which consumers seek out and use various sources of information to make informed decisions before making a purchase.

Alternative Evaluation

A stage in the consumer decision process where different options are assessed against criteria like features, benefits, price, and quality, to make a purchase decision.

Problem Recognition

The initial stage in the consumer decision-making process where a consumer identifies a need or problem that requires a solution.

Prepurchase Cognition

The thought processes and considerations of consumers before making a buying decision, including research, evaluation of alternatives, and the influence of attitudes and beliefs.