05/10/20 U utope (B). Using facts in the chapter for Ganade Europassume that the exchange rate on January 2, 2016. in 116 dropped in value from 51.1200 to 50 92002 Recalculate Ganade Europe's translated balance sheet for January 2, 2016, with the new exchange rate using the temporale method as shown in the popup window m 11:59pm 05/10/20 11:59pm 05/10/20 11:59pm a. What is the amount of translation gain or loss? b. Where should it appear in the financial statements ? c. Why does the tradition loss or gain under the temporalthed or from the loss or gain under the current rate method? What is the amount of r etion gain or loss? Entra poveber og and re for a los (Round to the nearest dolar) Wer k ppear in the ancial statements Select the best choice below) 05/10/20 11:59pm 05/10/20 11:59pm A The song in low for the year is added to the balance in the R ed s court OB. The forthe year is added to the balance in the O The Valongo ) for the year is added to the balance in the Total s and Net Worth OD. The wingen ) for the year is added to the balance in the mothers (CIA) c. Why does the ones or gain under the temporal method inter from the loss or gain under the current who 05/10/20 11:59pm 05/10/20 11:59pm led the best choice below) OA The exposed OB. The exposed OC. The expe OD. The exposed t 05/10/20 11:59pm under the current rate m od are larger than under the temporal method by the amount of cash and c o the current method are larger than under the temporal method by the most of the tomb n der the contrate med are loger than under the comported by the amount of memory and under the camera method are leger than under the temporal method by the amount of accounts roche and long land and common steck wund tot should The trans The trans The trans The trans my does the EXHIBIT 11.6 Ganado Europe's Translation Loss After Depreciation of the Euro: Temporal Method December 31, 2015 January 2, 2016 Exchange Rate Translated Exchange Rate Translated Assets In Euros (C) (US$/euro) Accounts (USS) (USSleuro) Accounts (USS) Cash 1,800,000 1.1200 $2.016,000 0.9200 $1,656,000 3.500.000 1.1200 Accounts receivable 0.9200 3.920,000 3.220 000 2,700,000 1.1450 Inventory 1.1450 3,091,500 3,091,500 5.200.000 6,219,200 1.1960 1.1960 Net plant and equipment 6219 200 13.200.000 Total 514.106.700 $15,246,700 Liabilities and Net Worth 1.1200 09200 $1,680,000 $1,380,000 1,500,000 Accounts payable 1.748.000 0.9200 2,128.000 1.1200 1.900.000 Short-term banko 1.268.000 0.9200 1.568.000 1.1200 1.400.000 Long-term debt 2033 200 1.1960 1.1960 1,700,000 2,033 200 Common stock 1.1627 (b) 7.837.500 7.837.500 6.700.000 11627 (a) Retained earnings (c) Translation gain (loss) $15 246,700 13.200.000 Total (1) Dollar retained earnings before depreciation are the cumulative sum of addition to retained camings of all prior years, translated to exchange rates in each year (b) Translated into dollars at the same rate as before depreciation of the euro (c) Under the temporal method, the translation loss would be closed into retained earnings through the income statement rather than left as a separate line item as shown here. m. The expo B. The expo C. The expo D. The expo $14,186,700 Click on the icon located on the top-nght corner of the data table in order to copy its content into a spread Print Done