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Reading 24: Multinational Operations LOS d ~ Q94-96

Q94. If Capriati uses the all-current method to translate Navratov’s income statement, the net profit margin will be:

A)   8.6%.

B)   10.1%.

C)   11.7%.

Q95. What is the difference in the translated receivables turnover ratio for Navratov Corp. between the temporal and all-current

     methods? The receivables turnover rate is:

A)   lower under the all-current method by 0.30x.

B)   the same under both methods.

C)   higher under the all-current method by 0.36x.

Q96. What is the difference in the total asset turnover ratio for Navratov Corp. between the temporal and all-current methods? The

     total asset turnover ratio is:

A)   higher under the all-current method.

B)   the same under both methods.

C)   lower under the all-current method.

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