Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Americo Industries' Consolidate Earnings. Americo is a U.S.-based multinational manufacturing firm with wholly-owned subsidiaries in Brazil, Germany, and China, in addition to domestic operations in
Americo Industries' Consolidate Earnings. Americo is a U.S.-based multinational manufacturing firm with wholly-owned subsidiaries in Brazil, Germany, and China, in addition to domestic operations in the United States. Americo is traded on the NASDAQ. Ameri o currenty has 644,000 shares outstanding. The basic operating characteristics the arious business units are as follows: Clic on t ioon to import the table into a spreadsheet Chinese Brazilian Subsidiary (RS) R$6,250 25% R$1.824/S Germar Subsidiary U.S. Parent (USS) $4,480 35% Business Performance (000s) Eamings before taxes (EBT) Corporate income tax rate Average exchange rate for the period Y2,470 30% 7.6622$ E4,730 40% E0.6109/$ Americo must pay corporate income tax in each country in which it currently has operations. a. After deducting taxes in each country, what are Americo's consolidated earnings and consolidated earnings per share in U.S. dollars? b. What proportion of Americo's consolidated earnings arise from each individual country? c. What proportion of Americo's consolidated earnings arise from outside the United States? a. After deducting taxes in each country, what are Americo's consolidated earnings and consolidated earnings per share in U.S. dollars? Calculate the business performance per country below: (Round to two decimal places. Round exchange rates to four decimal places.) U.S. Parent Business Performance (000s) Earnings before taxes (local currency) Less corporate income taxes Net profits of individual subsidiary $ Earnings before taxes (local currency) S Less corporate income taxes Net profits of individual subsidiary Avg exchange rate for the period (fc/S) Net profits of individual subsidiary
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