Foreign Currency ImpactKellogg included the following note in its fiscal 2015 10-Kreport ($ millions)....Foreign...

70.2K

Verified Solution

Question

Accounting

Foreign Currency Impact
Kellogg included the following note in its fiscal 2015 10-Kreport ($ millions).
Comparable net income attributable to Kellogg............................. $1,257
Foreign currencyimpact................................................ (100)
Currency neutral comparable net income attributable to Kellogg................ $1,357
a. Assume the foreign currency impact related entirely toforeign sales. Determine whether the $US strengthened or weakenedvis-à-vis the currencies in which Kellogg conducts business.
b. Assume the foreign currency impact related entirely topurchases of goods from foreign vendors. Determine whether the $USstrengthened or weakened vis-à-vis the currencies in which Kelloggconducts business.
c. As an analyst, how would we treat this foreign currencyimpact in our analysis of Kellogg?

Answer & Explanation Solved by verified expert

4.1 Ratings (598 Votes)

Answer a Cash impartial net similar pay for Kellogg has expanded by 100 million because of the remote money affect This implies the outside deals income got in a cash other than US when converted See Answer

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!

Become a Member

Transcribed Image Text

In: AccountingForeign Currency ImpactKellogg included the following note in its fiscal 2015 10-Kreport ($ millions)....Foreign Currency ImpactKellogg included the following note in its fiscal 2015 10-Kreport ($ millions).Comparable net income attributable to Kellogg............................. $1,257Foreign currencyimpact................................................ (100)Currency neutral comparable net income attributable to Kellogg................ $1,357a. Assume the foreign currency impact related entirely toforeign sales. Determine whether the $US strengthened or weakenedvis-à-vis the currencies in which Kellogg conducts business.b. Assume the foreign currency impact related entirely topurchases of goods from foreign vendors. Determine whether the $USstrengthened or weakened vis-à-vis the currencies in which Kelloggconducts business.c. As an analyst, how would we treat this foreign currencyimpact in our analysis of Kellogg?