Question

Prince Albert Canning PLC had a net loss of £"47,131" on sales of £199,652. In dollars, sales were $317,073. What was the net loss in dollars?

Answer 1

Answer:

Net Loss = $ 74,849

Explanation:

First calculate GBPUSD partity which will be determined as follows:

GBPUSD Parity = $ 317,073/ £ 199,652

                          = 1.5881

By multiplying above parity with loss in GBP figure;

Loss in Dollar     =  £ 47,131 x 1.5881

                            = $ 74,849