Zephyr Limited has the following items in its statement of profit or loss and other comprehensive income: NZ$
Revenue 140 000
Cost of goods sold 85 000
Interest expense 14 000
Income tax expense 12 000
All items arose evenly across the year. The following exchange rates applied:
End of reporting period NZ$1.00 = A$0.90
Average rate for year &nbsp&nbsp&nbsp&nbspNZ$1.00 = A$0.85
The net profit after tax translated into the presentation currency of A$ is:
A) $46 750
B) $24 650
C) $34 118
D) $26 100

Question

Zephyr Limited has the following items in its statement of profit or loss and other comprehensive income: NZ$
Revenue 140 000
Cost of goods sold 85 000
Interest expense 14 000
Income tax expense 12 000
All items arose evenly across the year. The following exchange rates applied:
End of reporting period       NZ$1.00 = A$0.90
Average rate for year      &nbsp&nbsp&nbsp&nbspNZ$1.00 = A$0.85
The net profit after tax translated into the presentation currency of A$ is:
A) $46 750
B) $24 650
C) $34 118
D) $26 100

Quizplus · Accepted Answer

The Answer of Zephyr Limited has the following items in its statement of profit or loss and other comprehensive income: NZ$
Revenue 140 000
Cost of goods sold 85 000
Interest expense 14 000
Income tax expense 12 000
All items arose evenly across the year. The following exchange rates applied:
End of reporting period       NZ$1.00 = A$0.90
Average rate for year      &nbsp&nbsp&nbsp&nbspNZ$1.00 = A$0.85
The net profit after tax translated into the presentation currency of A$ is:
A) $46 750
B) $24 650
C) $34 118
D) $26 100

Zephyr Limited Has the Following Items in Its Statement of Profit