Q18. Dell Air Lines has recently acquired Australian Puddle Jumpers, Inc. (APJ), a small airline located in Sydney . The Australian dollar has been chosen by Dell as the functional currency for APJ. The Balance Sheet of APJ is given below as of Dec. 31, 2001 in U.S. dollars. Assets
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| Liabilities and Equity
| Cash | $100 |
| Accounts Payable (A/P) | $90 | Accounts Receivable (A/R) | 120 |
| Common Stock | 360 | Maintenance Supplies | 90 |
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| Fixed Assets | 140
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| Total Assets | $450
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| Total Liabilities & Equity | $450
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APJ's income statement for the year ending Dec. 31, 2002 is expressed in Australian dollars as: Sales | 3,500 | Total Costs | 2,900
| Net Income | 600
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The Australian dollar has steadily depreciated against the U.S. dollar. At Dec. 31, 2001, the exchange rate was 2.5 Australian dollars = $1 but at Dec. 31, 2002, the exchange rate had deteriorated to 3 Australian dollars = $1. The Dec. 31, 2002 Balance Sheet for APJ is given in Australian dollars as follows: Assets |
| Liabilities and Equity | Cash | 441 |
| A/P | 210 | A/R | 330 |
| Common Stock | 720 | Supplies | 291 |
| Retained Earnings | 600 | Fixed Assets | 468 |
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| Total Assets | 1,530 |
| Total Liabilities & Equity | 1,530 |
On APJ's 2002 income statement, the level of sales in U.S. dollars would be:</FONT A) $1,985.</FONT< TD> B) $1,272.</FONT< TD> C) $1,167.</FONT< TD>
Q19. On APJ's 2002 income statement, the level of net income in U.S. dollars would be: A) $242. B) $217. C) $200.
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发表于 2009-1-17 15:32
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