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Suppose 1 Year Ago Hein Company Had Inventory in Britain

question 28

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Suppose 1 year ago Hein Company had inventory in Britain valued at 240,000 pounds.The exchange rate for dollars to pounds was £1 = 2 Canadian dollars.This year,the exchange rate is £1 = 1.82 Canadian dollars.The inventory in Britain is still valued at 240,000 pounds.What is the gain or loss in inventory value in Canadian dollars as a result of the change in exchange rates?


Definitions:

Paid-In Capital

Refers to the amount of capital "paid in" by investors during common or preferred stock issuances, including the excess over the par value.

Reissued

Refers to items or securities that are sold or distributed again after being previously issued.

Treasury Stock

Stocks that were initially released and then bought back by the company that issued them, decreasing the number of available shares in the market.

Cash Dividend

A payment made by a company out of its earnings to shareholders, usually in cash.

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