The answer is D.Level of bank credit.
Answer:
2.30% appreciated
Explanation:
The computation of the change in dollar is shown below;
But before that we have to find out the base currency which is
As we know that
Old rate = $0.8909 / Euro
And New rate = $0.8709 / Euro
Therefore changing the base currency to Dollar, we get
Old rate = (1 ÷ 0.8909)
= Euro 1.122460 / $
New rate = (1 ÷ 0.8709)
= Euro 1.148237 / $
The more number of Euors could be bought when there is a change in rates together the dollar is also used. So dollar has appreciated.
Now the change in dollar is
Change in dollar = (New rate ÷ Old rate) -1
= (1.148237 ÷ 1.122460) - 1
= 1.0229647 - 1
= 0.0229647
= 2.29647% or 2.30%
<u>Solution and Explanation:</u>
<u>Cost of goods sold section :</u>
Beginning inventory, September 1, 2013 24350
Purchase 203160
Less: Purchase return and allowance -8250
Net purchase 194910
Add: Freight in 9080
Cost of goods purchased 203990
Cost of goods available for sale 228340
Less: Inventory august 31,2014 -24300
Cost of goods sold 204040
<u>Note: N</u>et purchases are calculated after deducting purchase return and allowances from the purchase. For calculating the cost of goods purchased, freight in is to be added.