International Companies Sanchez Bearing Company produces and markets bearings that are lightweight and have a very high heat tolerance. Sanchez’s balance sheet includes the assets and liabilities of its foreign subsidiaries, which are located in five different countries. In preparing the balance sheet for Sanchez, assets and liabilities located in different countries are combined. What difficulties might arise from the combination for:

a. The classification of balance sheet items?

. The valuation of assets and liabilities?

. Analyzing the current ratio and working capital?

aos . Making comparisons to other bearing manufacturers?