Problem:
Westmore, Ltd. is a British subsidiary of a U.S. company. Westmore's functional currency is the pound sterling. The following exchange rates were in effect during 2009:
Jan 1 $1 = £.625
June 30 $1 = £.610
Dec 31 $1 = £.620
Weighted average rate for the year $1 = £.630
Required to do:
Question 1) Westmore reported sales of £1,500,000 during 2009. What amount would have been included for this subsidiary in calculating consolidated sales?
Question 2) On December 31, Westmore had accounts receivable of £280,000. What amount would have been included for this subsidiary in calculating consolidated accounts receivable?