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Q13. The summarised consolidated financial statements for the year ended 30 September 20X7 (and the comparative figures) for the Tangier group are shown below.
Q13. The summarised consolidated financial statements for the year ended 30 September 20X7 (and the comparative figures) for the Tangier group are shown below. Consolidated statements of profit or loss for the year ended 30 September in pounds ( ('000): Sales Revenue Gross profit Net Income Exchange rates 20X7 20X8 20X9 2,700 1,820 4,000 810 728 2,200 135 280 600 1= $2.10 $1= 0.454 1= $1.60 The company payout ratio (ratio of dividends paid to reported earnings) has averaged 10 percent. Required: A. Perform a convenience translation into U.S. dollars for each year for only sales revenue (1.5 marks) B. Compare the year to year percentage changes in sales revenues in pounds and in U.S. dollars. Do the two-time series move in parallel fashion? Why or why not? (2.5 marks)
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