+ 10 Primary income (investment income earned abroad) 72 Imports of goods and services 98 Augusta investment abroad 183 Primary income (investment income pa

Financial Reporting, Financial Statement Analysis and Valuation
8th Edition
ISBN:9781285190907
Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Chapter7: Financial Activities
Section: Chapter Questions
Problem 2EIC
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The following balance of payments data is for the economy of Augusta:

Foreign investment in Augusta 174
Transfer (net) + 10
Primary income (investment income earned abroad) 72
Imports of goods and services 98
Augusta investment abroad 183
Primary income (investment income paid abroad) 68
Exports of goods and services 92


c) What is the balance on its capital account?
d) Is there an overall balance of payments surplus or deficit? How much?

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