A US Company Has a Subsidiary Located in Great Britain

question 64

Multiple Choice

A U.S. company has a subsidiary located in Great Britain. Information for the subsidiary for the year ended December 31, 2006, is as follows:
$\begin{array}{ll}&\text { British pound }\\\text { Gross profit margin } & 40 \% \\\text { Inventory } & 2,000\\\\&\text { Exchange Rate }\\\text { Balance sheet date } & 1 \text { pound }=\$ 1.6 \\\text { Average exchange rate } & 1 \text { pound }=\$ 1.5 \\\text { Historical rate } & 1 \text { pound }=\$ 1.4\end{array}$

-If sales were 3,000 in British pounds for the fiscal year and the temporal method was used, what would this be in U.S. dollars?

• A)$4,800
• B)$4,500
• C)$4,200
• D)$4,000

---

Definitions:

Case Example

An instance or occurrence that is used to illustrate a principle, validate an argument, or exemplify a broader phenomenon.

Human Dilemma

A situation or problem inherent to the human condition that presents challenges or obstacles that are difficult to navigate or resolve.

May's Concept

Refers to Rollo May's theories in existential psychology focusing on human choice, anxiety, and the search for meaning.

Fromm's Concept

Pertains to the theories of Erich Fromm, a psychoanalyst and social psychologist who explored the relationship between society and the individual's psychological processes.