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Assume that the balance sheet and income statement of a French subsidiary, which keeps its books in euro, is translated into U.S. dollars, the
Assume that the balance sheet and income statement of a French subsidiary, which keeps its books in euro, is translated into U.S. dollars, the reporting currency of the U.S. MNC. The table presents the balance sheet and income statement in euro.The subsidiary is at the end of its first year of operation.The historical exchange rate is $1.60/1.00 and the most recent exchange rate is $2.00/. Fill out the 20 missing entries that translate the balance sheet and income statement for this French subsidiary using the Current/Noncurrent Method, the Monetary/Nonmonetary Method, the Temporal Method, and the Current Rate Method. Local Currency Current/Non Monetary/Non current Current monetary Temporal Rate 1 Balance Sheet Cash 2,100 2 Inventory (current Value = 1,800) 1,500 3 Net fixed assets 3,000 6,600 Current liabilities 1,200 1,800 2,700 900 4 Total Assets 5 6 Long-term debt 7 Common stock 8 Retained earnings 9 CTA 10 Total L&E Income Statement 11 Sales Revenue 12 COGS 13 Depreciation 14 NOI 15 Tax (40%) 6,600 10,000 7,500 1,000 1,500 600 16 Profit after tax 900 17 Foreign Exchange gain (loss) 18 Net income 900 19 Dividends 20 Addition to Retained Earnings 900
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