Problem

Acme Corporation (a U.S. company located in Sarasota, Florida) has the following import/ex...

Acme Corporation (a U.S. company located in Sarasota, Florida) has the following import/export transactions in 2011:

March 1

Bought inventory costing 50,000 pesos on credit.

May 1

Sold 60 percent of the inventory for 45,000 pesos on credit.

August 1

Collected 40,000 pesos from customers.

September 1

Paid 30,000 pesos to creditors.

Currency exchange rates for 1 peso for 2011 are as follows:

March 1

$0.17

May 1

0.18

August 1

0.19

September 1

0.20

December 31

0.21

For each of the following accounts, how much will Acme report on its 2011 financial statements?

a. Inventory.


b. Cost of Goods Sold.


c. Sales.


d. Accounts Receivable.


e. Accounts Payable.


f. Cash.

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