On January 1, 2011, Fandu Corp. began operations of a foreign subsidiary. On April 1, 2011, the subsidiary purchased inventory costing 150,000 stickles. One-fourth of this inventory remained unsold at the end of 2011 while 40% of the liability from the purchase had not yet been paid. The pertinent indirect exchange rates were:

Required:
What should have been the December 31, 2011 inventory and accounts payable balances for this foreign subsidiary as translated into U.S. dollars? (Round your answers to the nearest whole dollar.)

Question

On January 1, 2011, Fandu Corp. began operations of a foreign subsidiary. On April 1, 2011, the subsidiary purchased inventory costing 150,000 stickles. One-fourth of this inventory remained unsold at the end of 2011 while 40% of the liability from the purchase had not yet been paid. The pertinent indirect exchange rates were:

Required:
What should have been the December 31, 2011 inventory and accounts payable balances for this foreign subsidiary as translated into U.S. dollars? (Round your answers to the nearest whole dollar.)

Quizplus · Accepted Answer

The Answer of On January 1, 2011, Fandu Corp. began operations of a foreign subsidiary. On April 1, 2011, the subsidiary purchased inventory costing 150,000 stickles. One-fourth of this inventory remained unsold at the end of 2011 while 40% of the liability from the purchase had not yet been paid. The pertinent indirect exchange rates were:

Required:
What should have been the December 31, 2011 inventory and accounts payable balances for this foreign subsidiary as translated into U.S. dollars? (Round your answers to the nearest whole dollar.)