Local Currency

Income statement for 2021 $S

Sales revenue 7,000,000
Opening Inventory 1,000,000
Purchases 4,000,000
Ending inventory -500,000
Cost of Goods Sold 4,500,000
Gross Profit 2,500,000
Depreciation- equipment -150,000
Depreciation- building -55,000
Other expenses -400,000
Tax -1,000,000
-/+ foreign exchange gain/loss (if applicable)
Net Profit 895,000
Retained Earnings 1/1/21 3,000,000
Dividends -500,000
Retained Earnings 31/12/21 3,395,000

Balance Sheet as at 31 Dcember 2021

Contributed Capital 17,000,000
Additional contributed capital 3,000,000
Retained Earnings 3,395,000
Foreign Currency Translation Reserve (if applicable)
Accounts Payable 2,000,000
Total Liabilities and Equity 25,395,000

Equipment (net) 17,850,000

Building (net) 4,055,000
Inventory 500,000
Cash and accounts receivable 2,990,000
Total Assets 25,395,000

• Relevant exchange rates were as follows:

1 January 2021:S$1.00 = NZ$ 1.1
1 October 2021:S$1.00 = NZ$ 1.14
15 October 2021:S$1.00=NZ$ 1.16
1 December 2021S$1.00= NZ$ 1.17
15 December 2021:S$1.00 = NZ$ 1.18
31 December 2021:S$1.00 = NZ$ 1.2
Average 2021:S$1.00 = NZ$ 1.15
 1. NZ dollar is the Functional Currency 2. The Singaporean dollar is the Functional Currency
Exchange rate $NZ Exchange rate $NZ
dollar is the Functional Currency
$NZ