Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Assume that the balance sheet and income statement of a French subsidiary, which keeps its books in euro, is translated into US dollars, the reporting

image text in transcribed
Assume that the balance sheet and income statement of a French subsidiary, which keeps its books in euro, is translated into US 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 $1.60/6100 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 Current/Non Monetary/Non Current Currency current monetary Temporal Rate Balance Sheet 1 Cash 2,100 2 Inventory (current Value = 1,800) 1,500 3 Net fixed assets 3,000 4 Total Assets 6,600 5 Current liabilities 1,200 6 Long-term debt 1,800 7 Common stock 2,700 8 Retained earnings 900 9 CTA 10 Total L&E 6,600 Income Statement 11 Sales Revenue 10,000 12 COGS 7,500 13 Depreciation 1,000 14 NOI 1,500 15 Tax (409) 600 16 Profit after tax 900 17 Foreign Exchange gain (loss) 18 Net income 19 Dividends 2 Addition to retained Farninns 900 0 QAA

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Personal Finance

Authors: Jack Kapoor, Les Dlabay, Robert J. Hughes

8th Edition

007322359X, 9780073223599

More Books

Students also viewed these Finance questions

Question

Show that Cov[dL 1 , dL 3 ] = 1 L 1 3 L 3 12 23 dt.

Answered: 1 week ago

Question

what is the most common cause of preterm birth in twin pregnancies?

Answered: 1 week ago

Question

Which diagnostic test is most commonly used to confirm PROM?

Answered: 1 week ago

Question

What is the hallmark clinical feature of a molar pregnancy?

Answered: 1 week ago