Question
Ajax Manufacturing's German subsidiary has the following balance sheet: Non-current assets Accounts receivable Inventory (at market) Cash, marketable securities Total assets 5,100,000 2,700,000 1,000,000 250,000
Ajax Manufacturing's German subsidiary has the following balance sheet:
Non-current assets Accounts receivable Inventory (at market) Cash, marketable securities Total assets |
5,100,000 2,700,000 1,000,000 250,000 ----------------- 9,050,000 |
Equity Non-current liabilities Current liabilities
Total equity And liabilities |
4,900,000 3,400,000 750,000
--------------- 9,050,000 |
Suppose the euro appreciates from $0.70 to $0.76 during the period?
10.22 Under the temporal method, what is Ajax's translation gain (loss)?
a) a gain of $294,000
b) a gain of $192,000
c) a loss of $174,000
d) a loss of $12,000 <- answer
show how to work (= process of calculation)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started