On January 1, 2011, Fandu Corp

question 60

Essay

On January 1, 2011, Fandu Corp. began operations of a foreign subsidiary. On April 1, 2011, the subsidiary purchased inventory costing 150,000 stickles. One-fourth of this inventory remained unsold at the end of 2011 while 40% of the liability from the purchase had not yet been paid. The pertinent indirect exchange rates were: Required:
What should have been the December 31, 2011 inventory and accounts payable balances for this foreign subsidiary as translated into U.S. dollars? (Round your answers to the nearest whole dollar.)

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Definitions:

Emotional Response

The psychological and physiological reactions to stimuli that are perceived as emotionally relevant.

Cognitive Control

Using rational thinking to regulate one’s emotions and to control how one reacts to emotional feelings.

Frontal Lobes

The part of the brain involved in executive functions, such as decision making, problem solving, and controlling behavior.

Bodily Humor

A historical theory in medicine that believed human health and temperament depended on the balance of bodily fluids.