Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Balance Sheet as at December 31 (in U.S. Dollars) 2020 2019 Current Monetary Assets $8,000,000 $7,500,000 Inventory $2,000,000 $3,000,000 Plant and Equipment (Net) $1,500,000 $1,800,000

Balance Sheet as at
December 31 (in U.S. Dollars)

20202019
Current Monetary Assets$8,000,000$7,500,000
Inventory$2,000,000$3,000,000
Plant and Equipment (Net)$1,500,000$1,800,000
Total Assets$11,500,000$12,300,000
Current Liabilities$1,100,000$2,300,000
Bonds Payable (due Dec 31, 2026)$5,000,000$5,000,000
Common Shares$4,000,000$4,000,000
Retained Earnings$1,400,000$1,000,000
Total Liabilities and Equity$11,500,000$12,300,000


Income Statement for
the Year ended
December 31, 2020

Sales$5,200,000
Inventory, January 1, 2020$3,000,000
Purchases$3,000,000
Inventory, December 31, 2020($2,000,000)
Depreciation Expense$300,000
Other Expenses$400,000
$4,700,000
Net Income$500,000


Other Information:

Exchange Rates:

December 31, 2019:US $1 = CDN $1.1850
September 30, 2020:US $1 = CDN $1.1975
December 31, 2020:US $1 = CDN $1.20
Average for 2020:US $1 = CDN $1.19


Wilsen paid US$100,000 in dividends on September 30, 2020. The inventories on hand at the end of 2020 were purchased when the exchange rate was US$1 = CDN$1.195.

Sales, purchases and other expenses occurred evenly throughout the year.

Compute Wilsen's exchange gain or loss for 2020 if Wilson's functional currency is the same as Hilman Enterprises' functional currency (i.e., the Canadian dollar).

Step by Step Solution

3.38 Rating (154 Votes )

There are 3 Steps involved in it

Step: 1

Integrated foreign operations Balance Sheet as at December 31 2020 Particulars Exchange Rate Amount in USD Amount In CDN Current Monetary Assets 12000 ... 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

Fundamentals Of Financial Management

Authors: James Van Horne, John Wachowicz

13th Revised Edition

978-0273713630, 273713639

More Books

Students also viewed these Accounting questions

Question

What is the difference between adsorption and absorption?

Answered: 1 week ago