Q64. The Herlitzka Company, a U.S. multinational firm, has a 100 percent stake in a Swiss subsidiary. The U.S. dollar (USD) has been determined to be the functional currency. All the common stock of the subsidiary was issued at the beginning of the year and the subsidiary uses the weighted-average inventory cost-flow assumption. In addition, the value of the SF is as follows: Beginning of year | $0.5902 | Average throughout the year | $0.6002 | End of year | $0.6150 |
The SF-based balance sheet and income statement data for the Swiss subsidiary are as follows: Accounts receivable
| = 3,000
| Inventory | = 4,000 | Fixed assets | = 12,000 | Accounts payable | = 2,000 | Long-term debt | = 5,000 | Common stock | = 10,000 | Retained earnings | = 2,000 | Net income | = 2,000 |
The remeasured value of accounts receivable and inventory respectively are closest to: A) $1,845 and $2,401. B) $1,845 and $2,361. C) $1,771 and $2,361. | 
发表于 2009-1-20 11:15
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