Question
Assume that your company owns a subsidiary operating in Great Britain. The subsidiary maintains its books in the British pound (GBP) as its functional currency.
Assume that your company owns a subsidiary operating in Great Britain. The subsidiary maintains its books in the British pound (GBP) as its functional currency. The relevant exchange rates for the $US value of the British pound (GBP) are as follows: BOY rate $1.42 EOY rate $1.49 Avg. rate $1.45 PPE purchase date rate $1.46 LTD borrowing date rate $1.46 Dividend rate $1.47 Historical rate (common stock and APIC) $1.07 HINT: For all parts of this problem, use a negative sign with your answers to indicate a reduction. a. Translate the subsidiarys income statement, statement of retained earnings, balance sheet, and statement of cash flows from British pounds (GBP) into $US (assume that the BOY Retained Earnings for the subsidiary is $3,901,380). Round answers in the "In US Dollars" column to the nearest whole number.
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