REFERENCE: Ref.10_05 a Subsidiary of Porter Inc. ,A U.S.company,was Located in a in a Foreign

question 73

Multiple Choice

REFERENCE: Ref.10_05
A subsidiary of Porter Inc. ,a U.S.company,was located in a foreign country.The functional currency of this subsidiary was the stickle (§) .The subsidiary acquired inventory on credit on November 1,2008,for §120,000 that was sold on January 17,2009 for §156,000.The subsidiary paid for the inventory on January 31,2009.Currency exchange rates between the dollar and the stickle were as follows:

-What figure would have been reported for cost of goods sold on Porter's consolidated income statement at December 31,2009?

• A)$24,000.
• B)$26,400.
• C)$22,800.
• D)$27,600.
• E)$28,800.

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Definitions:

Least Squares Regression Line

The least squares regression line is a straight line that minimizes the sum of the squared differences between the observed values and the values predicted by the line.

Regression Analysis

A statistical technique used to model the relationship between a dependent variable and one or more independent variables.

Demand

The quantity of a good or service that consumers are willing and able to purchase at various prices during a given period.

Price

The amount of money that must be paid to acquire a good or service.