9. The year 1 financial statements of the Brazilian subsidiary of Artemis Corporation ( a Canadian company) revealed the following: Brazilian Reals ( BRL) Beginning inventory 100,000 Purchases 500,000 Ending inventory 150,000 Cost of Goods sold 450,000 Canadian dollar (C$) exchange rates for 1 BRL as follows: January 1, Year 1 C $ 0.45 Average, Year 1 0.42 December 31, Year 1 0.38 The beginning inventory was acquired in the last quarter of the previous year when the exchange rate was C$0.50 = BLR 1; ending inventory was acquired in the last quarter of the current year when the exchange rate was C$0.40 = BLR 1. A. Assuming that the current rate method is the appropriate method of translation, determine the amounts at which the Brazilian subsidiary?s ending inventory and cost of goods sold should be included in Artemis?s Year 1 consolidate financial statements.
Paper#8177 | Written in 18-Jul-2015Price : $25