Q32. Wasson Brothers (WB) is a large U.S. based conglomerate with many subsidiaries in both the U.S. and abroad. One of WB's wholly-owned foreign subsidiaries, Kasamatsu Industries, is based in Japan and manufactures a hugely successful line of trading cards, toys, and other related products. All of Kasamatsu's operations and sales take place in Japan, and the corresponding transactions are denominated in Japanese yen. Additionally, Kasamatsu's books and records are all maintained in yen. WB reports its earnings in U.S. dollars. The history of the exchange rate between the dollar and the yen over the last two years is presented in the following table. Figures are presented in /$. Yen/Dollar Exchange Rate | December 31, 2002 | 150 | December 31, 2001 | 130 |
| 2002 Average | 140 | 2001 Average | 120 |
| Exchange rate on date that 2002 dividends were paid to Wasson Brothers | 145 | Exchange rate on date of stock issue and acquisition of fixed assets. | 100 |
If Jameson wishes to convert any of the figures on Kasamatsu's Income Statement from yen to dollars, she should use which of the following exchange rates (/$)? A) 140. B) 150. C) 130.
Q33. Jameson would like to look at some of Kasamatsu's figures in U.S. dollars. What would be the appropriate exchange rate (/$) to use in translating Kasamatsu's reported dividends into U.S. dollars?
A) 145. B) 150. C) 140.
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发表于 2009-1-17 15:51
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