A USCompany's Foreign Subsidiary Had the Following Amounts in Stickles (§)

question 7

Multiple Choice

A U.S.company's foreign subsidiary had the following amounts in stickles (§) in 2018: The average exchange rate during 2018 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, 2018 was §1 = $.84.Assuming that the foreign country had a highly inflationary economy, at what amount should the foreign subsidiary's cost of goods sold have been reflected in the 2018 U.S.dollar income statement?

• A) $11,253,600.
• B) $11,577,600.
• C) $11,649,600.
• D) $11,613,600.
• E) $11,523,600.

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Definitions:

Random Numbers

Random numbers are sequences of digits (usually between 0 and 1) generated in such a way that each number has an equal probability of occurring, commonly used in simulations and statistical sampling.

Cumulative Probability Distribution

A statistical function that describes the probability of a random variable falling within a certain range or being less than a specific value.

Monte Carlo Simulation

A computational technique that uses random sampling to obtain numerical results, often used for risk assessment or to solve physical and mathematical problems.

Cumulative Probability Distribution

A function that gives the probability that a random variable is less than or equal to a certain value.