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