Advanced Financial Accounting Question Need Help

Question

Problem 1 : Westmore, Ltd. is a British subsidiary of a U.S. company. Westmore's functional currency is the pound sterling. The following exchange rates were in effect during 2011:
Jan 1 : 1 pound sterling = 1.60
June 30th : 1 pound sterling = 1.64
December 31st : 1 pound sterling = 1.61
Weighted Average For The Year = 1 pound sterling = 1.59

Question 1)
Westmore reported sales of £1,500,000 during 2011. What amount (rounded) would have been included for this subsidiary in calculating consolidated sales?
A. $2,415,000.
B. $2,400,000.
C. $2,385,000.
D. $943,396.
E. $931,677.

Need to know how the number for C is calculated exactly



Question 2 :
On December 31, 2011, Westmore had accounts receivable of £280,000. What amount (rounded) would have been included for this subsidiary in calculating consolidated accounts receivable?
A. $173,913.
B. $176,100.
C. $445,200.
D. $448,000.
E. $450,800.

Need to know how 450,800 is calculated exactly

Answer 1

Question 1:

Since the sales figure was the annual total, the only choice is to multiply the annual total by the average exchange rate.

Thus, £1,500,000 x 1.59 = $2,385,000.

 

Question 2:

Since the value for accounts receivable was the annual total, the only choice is to multiply that figure by the average exchange rate.

Thus, £280,000 x 1.59 = $450,800.