答案和详解如下： Q35. What will Jameson find to be the U.S. dollar impact of Kasamatsu's total selling expenses on WB's financial statements (in thousands of dollars)? A) $3,220. B) $3,450. C) $4,150. Correct answer is B) Total selling expenses include cost of goods sold, depreciation, and SG&A. Kasamatsu reported a total of JP 483,000. Since these are all income statement items they must all be translated at the average 2002 exchange rate of 140 JP/US$. Therefore, the calculation is: Both remaining answers use incorrect exchange rates. Q36. The Herlitzka Company, a U.S. multinational firm, has a 100% 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 total value of net monetary assets is equal to: A) -4,000 SF. B) 12,000 SF. C) 3,000 SF. Correct answer is A) The basis for using the all current method is when Functional Currency is NOT the same as Parent's Presentation (reporting) Currency. The basis for using the temporal method is when Functional Currency = Parent's Presentation Currency. Monetary assets and liabilities include cash, A/R, A/P and Long-term debt. Hence, net monetary assets is equal to 3,000 − (2,000 + 5,000) = -4,000 SF. Q37. Dell Air Lines has recently acquired Australian Puddle Jumpers, Inc., 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, 2004 in Australian dollars. Assets
|
| Liabilities and Equity
| Cash | $200 |
| A/P | $180 | A/R | 240 |
| Common Stock | 720 | Maintenance Supplies | 180 |
|
|
| Fixed Assets | 280
|
|
|
| Total Assets | $900
|
| Total Liab & Equity | $900
|
APJ's income statement for the year ending Dec. 31, 2005 is expressed in Australian dollars as: Sales | 3,500 | Total Costs | 2,900
| Net Income | 600
|
The Australian dollar has steadily depreciated against the U.S. dollar. At Dec. 31, 2004, the exchange rate was 2 Australian dollars = $1 but at Dec. 31, 2005, the exchange rate had deteriorated to 3 Australian dollars = $1. The Dec. 31, 2005 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 |
|
|
|
|
|
|
|
| Total Assets | 1,530 |
| Total Liab. & Equity | 1,530 |
On APJ's 2005 income statement, the level of sales in U.S. dollars would be: A) $1,750. B) $1,400. C) $1,167. B) The basis for using the all current method is when Functional Currency is NOT the same as Parent's Presentation (reporting) Currency. The basis for using the temporal method is when Functional Currency = Parent's Presentation Currency.
Since the Australian $ is both the local and the functional currency, use the current rate method. The items in the income statement are translated at the average exchange rate under FASB 52. The average rate is (2 + 3) / 2 = 2.5 Australian dollars = $1. Income Statement (in $) Sales (3,500 / 2.5) | $1,400 | Costs (2,900 / 2.5) | $1,160 | Net Income | $240 |
| 
发表于 2009-1-17 15:58
| 
