Plymouth Corporation (A U Required:
1

question 40

Essay

Plymouth Corporation (a U.S.company)began operations on September 1,2014,when the owner borrowed $250,000 to establish the business.Plymouth then had the following import and export transactions with unaffiliated Chinese companies:
The following exchange rates apply:
$\begin{array}{ll} \underline{\text { Date }} & \underline{\text { Rate }} \\\text { September } 6 & \$ 0.1544=1 \text { yuan } \\\text { September } 18 & \$ 0.1607=1 \text { yuan } \\\text { September } 30 & \$ 0.1591=1 \text { yuan } \\\text { October } 5 & \$ 0.1578=1 \text { yuan } \\\text { October } 18 & \$ 0.1593=1 \text { yuan }\end{array}$
Required:
1.What were Sales in the September month-end income statement?
2.What was the COGS associated with these sales?
3.What is the Accounts Receivable balance in the balance sheet at September 30,2014?
4.What is the Inventory balance in the balance sheet at September 30,2014?
5.What is the Exchange gain or loss that will be reported for the month of September?

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Definitions:

Annual Tax Bill

The total amount of taxes due to be paid each year by an individual or organization.

Property Taxes

Taxes levied by local governments on the value of real estate owned by individuals or businesses.

Valuation Rate

A rate used to estimate the current value of cash flows or assets, often used in the appraisal of businesses.

Market Value

Market value is the price at which an asset would trade in a competitive auction setting, reflecting its worth in the current market.