标题: CFA level 2 Multinational OperationsChallenge Question [打印本页] 作者: lord13 时间: 2017-3-16 16:36 标题: CFA level 2 Multinational OperationsChallenge Question
Gila Sailing and Fishing, Inc. (Gila), is a subsidiary of Sea of Cortez Unlimited Boating Adventures, Inc. (Cortez), a multinational organization headquartered in Tempe, Arizona. Gila is located in the Sonora Valley and sells fishing trips off the coast of the Sea of Cortez. Cortez accounts for Gila using the temporal method. Gila’s current balance sheet (denominated in pesos) is as follows:
Accounts payable 9.000. 000
Deferred revenue 2.000. 000
LTD 8,000,000
Equity 36.000. 000
Total liabilities and equity 55.000. 000
* Note: Deferred revenue relates to a wealthy customer who paid for several trips in advance but has been unable to find enough spare time to come back to Sonora.
21. Nonmonetary assets less nonmonetary liabilities are:
A. 5,000,000.
B. 41,000,000.
C. 43,000,000.
22. Cortez is concerned about depreciation of the peso and would like to change Gila’s capital structure. This would be best accomplished by:
A. borrowing pesos and reducing equity.
B. using cash to reduce accounts payable.
C. selling receivables and using the proceeds to pay down long-term debt.
Temporal Method means net monetary asset is exposed to currency risk.
B. using cash to payoff A/P => Monetary Asset and Monetary Liability both decreased for the same amount, as a result. No effect on the exposure to currency risk
C. is similar to B
A. Borrowing to reduce Equity, Monetary stays the same while monetary liability increased. Taking depreciation peso into account, the firm is likely to have a gain an currency exchange.作者: e_mailfly 时间: 2018-1-19 17:34
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