Using the table below, estimate the net exposure for Souris River Manufacturing of its' wholly-owned Canadian subsidiary.
Souris River Manufacturing (Canada)Balance Sheet December 31 200X

Question

Quizplus · Accepted Answer

The net exposure can be estimated by subtracting the Canadian subsidiary's Canadian dollar assets from its Canadian dollar liabilities. From the table provided, we can see that the subsidiary's assets total C$626,000 and its liabilities total C$460,000. Thus, the net exposure is C$166,000 (C$626,000 - C$460,000). So, the best choice is C.

Using the Table Below, Estimate the Net Exposure for Souris