Reference no: EM132966938
Question - On 1 July 2019 Nigel Ltd, an Australian company, acquires all the issued shares in Oswald Ltd, a company incorporated in another country. Exchange rates for the year ending 30 June 2020 are as follows:
1 July 2019 Foreign$1 = A$1.65
Average for the year Foreign$1 = A$1.54
Ending inventory acquired (before year end) Foreign$1 = A$1.47
30 June 2020 Foreign$1 = A$1.43
Statement of Profit or Loss and Other Comprehensive Income for Oswald Ltd for the year ending 30 June 2020 in the functional currency is:
Foreign$
Sales 6 400
Less Cost of Goods Sold:
Inventory 1 July 2019 700
Add Purchases 3 900
Less Inventory 30 June 2020 -850
Cost of Goods Sold 3 750
Gross Profit 2 650
Less Administration Expense -210
Less Depreciation Expense -330
Operating Profit 2 110
Less Income Tax Expense -930
Operating Profit after Tax 1 180
Other Comprehensive Income -
Comprehensive Income 1 180
Additional Information - Opening retained earnings as at 1 July 2018 amounts to Foreign $620.
Required - What is the translated cost of goods sold figure in Australian dollars (presentation currency)?
A. A$5 911
B. A$3 750
C. A$5 775
D. None of the given answers.
E. A$5 946