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

question 50

Multiple Choice

A U.S.company's foreign subsidiary had the following amounts in stickles (§) ,the functional currency,in 2011: $\begin{array} { l r } \text { Cost of goods sold } & \$ 12,000,000 \\\text { Ending inventory } & 600,000 \\\text { Beginning inventory } & 240,000\end{array}$ The average exchange rate during 2011 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 31,2011 was §1 = $.84.At what amount should the foreign subsidiary's purchases have been reflected in the 2011 U.S.dollar income statement?

• A)$11,865,600.
• B)$11,577,600.
• C)$11,520,000.
• D)$11,613,600.
• E)$11,523,600.

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Definitions:

Complements

Goods or services that are used together, where the use or consumption of one enhances the use or consumption of the other.

Law Of Supply

The Law of Supply states that, all else being equal, an increase in price results in an increase in the quantity supplied.

Quantity Supplied

The supply of a good or service that businesses intend to sell, given a certain price point.

Quantity Supplied

The measure of goods or services that vendors are eager and able to part with at a set price.