Hi,
I am looking at question 21 (Redline Products Inc.) from the CFA end of chapter questions in Financial Reporting which looks at FX rates on inventory etc.
The solution reads “A is correct. Because the US dollar has been consistently weakening against the Singapore dollar, cost of sales will be lower and gross profit higher when an earlier exchange rate is used to translate inventory, compared with using current exchange rates.”
But the US dollar is consistently strengthening as per the table in the question (exhibit 2). C is my answer. I don’t see this published in the errata so am I looking at this incorrectly?
Thanks a mil
Elon