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

A) C$40,000
B) C$160,000
C) C$166,000
D) C$200,000

Question

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

A) C$40,000 
B) C$160,000 
C) C$166,000 
D) C$200,000

Quizplus · Accepted Answer

To estimate the net exposure for Souris River Manufacturing of its wholly-owned Canadian subsidiary, we need to look at the total assets and liabilities in Canadian dollars. 
From the balance sheet, we can see that the total assets are C$300,000 and the total liabilities are C$134,000. Therefore, the net exposure (total assets - total liabilities) is C$166,000. So the best choice is C.

Using the Table Below, Estimate the Net Exposure for Souris