In: Accounting
Perth International Company,an Australian MNC forecats 69 million Australian dollars earnings for the year 1.
The comapany has three subsidiaries.It expects 57 million chinese yuan,44 million Indian Rupee and 36 million Malaysian Riggnitt earnings for year 1.
Lets convert the earnings of the three subsidiaries into Australian dollars using the conversion rates provided.
Thus,57 million Chinese yuan = 57 * 0.3590 = 20.463 Million Australian Dollars
44 million Indian Rupee = 44 * 0.0383 = 1.6852 million Australian Dollars
36 million Malaysian ringitt = 36* 0.6234 = 22.4748 million Australian Dollars
Therefore,the cash flow for year 1 for Perth International Company in Australian dollars is as below:
Earnings from the Australian parent company for year 1 = 69 million Australian Dollars
Earnings from the 3 subsidiaries for Year 1 = 20463 + 1.6852 + 22.4748 = 44.623 million Australian Dollars
Total Consolidated Earnings for Perth International Company = 69 + 44.623 = 113.623 Million Australian Dollars