Atreides International has operations in Arrakis. The balance sheet for this division in Arrakeen solaris shows assets

Question:

Atreides International has operations in Arrakis. The balance sheet for this division in Arrakeen solaris shows assets of 27,000 solaris, debt in the amount of 11,000 solaris, and equity of 16,000 solaris.

a. If the current exchange ratio is 1.50 solaris per dollar, what does the balance sheet look like in dollars?

b. Assume that one year from now the balance sheet in solaris is exactly the same as at the beginning of the year. If the exchange rate is 1.60 solaris per dollar, what does the balance sheet look like in dollars now?

c. Rework part (b) assuming the exchange rate is 1.41 solaris per dollar.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial... Exchange Rate
The value of one currency for the purpose of conversion to another. Exchange Rate means on any day, for purposes of determining the Dollar Equivalent of any currency other than Dollars, the rate at which such currency may be exchanged into Dollars...