4. What amount does Cadbury’s consolidated balance sheet report for this inventory at December 31, 2015? A. P 16,000 B. P 17,000 C. P 18,000 D. P 19,000
A subsidiary of Cadbury Corp. located in a foreign country whose functional currency is the foreign
currency. The subsidiary acquires inventory on credit on November 1, 2015, for 100,000 foreign currencies
(F) that is sold on January 17, 2016 for 130,000 foreign currencies (FC). The subsidiary pays for the
inventory on January 31, 2016. Currency exchange rates for 1 foreign currency (FC) are as follows:
November 1, 2015 P 0.16 = 1 FC
November 31, 2015 0.17 = 1
November 17, 2016 0.18 = 1
January 31, 2016 0.19 = 1
Average for 2016 0.20 = 1
4. What amount does Cadbury’s consolidated balance sheet report for this inventory at December 31,
2015?
A. P 16,000 B. P 17,000 C. P 18,000 D. P 19,000
5. What amount does Cadbury’s consolidated income statement report for cost of goods sold for the year
ending December 31, 2016?
A. P 16,000 B. P 17,000 C. P 18,000 D. P 19,000
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