Question 16 1 Point The income statement of Cairo Co. includes sales revenue $60,000 and cost of goods sold $40,000, selling and administrative expenses $8,000, the current exchange rate is $1=SR4 and the average exchange rate is $1=5R3.5 then net income in SR is A SR 42,000 B) SR 70,000 None of the other answers. SR 48,000 Question 17 1 Point A derivative can be used to offset ("hedge") the potential fluctuation in A all the other answers (except none of the other answers) B Foreign currency exchange rates Interest rates D Commodity prices E none of the other answers F Stock prices Question 18 1 Point The balance sheet of an Egyptian Co. includes: inventory $10,000, accounts receivable $20,000, Cash $30,000, Equipment $40,000, Accounts payable $10,000, Notes payable $30,000, the current exchange rate $1=SR4, the average exchange rate $1=SR5, the historical exchange rate for inventory $1=SR3, the historical exchange rate for equipment $1=SR2, and the historical exchange rate for notes payable $1=SR6, then the equity using temporal method (inventory by current rate) = A) SR 240,000 B) SR 160,000 None of the other answers. SR 150,000 Question 19 1 Point A corporation becomes a ...... when another corporation acquires controlling interest in its outstanding voting stock A subsidiary. B) holding. C) Acquire more than 50%. D None of the other answers