Q63. The Herlitzka Company, a U.S. multinational firm, has a 100% stake in a Swiss subsidiary. The Swiss franc (SF) 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 FIFO 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 translated value of common stock and long-term debt respectively are: A) $5,902 and $3,075. B) $5,902 and $3,001. C) $6,150 and $3,075. | 
发表于 2009-1-20 11:12
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