Bangkok Instruments, Ltd.(A). Bangkok Instruments, Ltd., the Thai subsidiary of a U.S.corporation, is a selsmic instrument manufacturer. Bangkok Instruments manufactures the instruments primarily for the ol and gas industry globally-though with recent commodity price increases of all kinds including copper, its business has begun to grow rapidly. Sales are primarily to multinational companies based in the United States and Europe, Bangkok Instruments' balance sheet in thousands of Thai bahts (B) as of March 31 is shown in the popup window. I Exchange rates for translating Bangkok Instruments' balance sheet into U.S. dollars are B44.00$ April 1 exchange rate after 25% devaluation B33.00/5 March 31 exchange rato, before 25% devaluation. All inventory was acquired at this rate B23,0015 Historic exchange rate at which plant and equipment were acquired The Thai baht dropped in value from B33.00/8 to 844.00/5 between March 31 and April 1. Assuming no change in balance sheet accounts between these two days, calculate the gain or loss from translation by both the current rate method and the temporal method. Bangkok Instruments translated balance sheet using the current rate method is shown here, and the one using the temporal method is shown hero, Explain the translation gain or loss in terms of changes in the value of exposed accounts Using the translated balance sheet under the current rate method, what is the amount of translation gain or loss? Enter a positive number for a gain and negative for a 105 Round to the nearest dollar Using the translated balance shoot under the temporal method, what is the amount of translation gain or low? Entor a positive number for a gain and negative for a (Round to the nearest dotor) The results in a translation gain, as opposed to the CTA loss found under the because of the different exchange rates used against met plant and equipment and the inventory line items. This gain would be impossible under the because all assets are exposed under that method, whereas the carries not plant and equipment and Inventory at relevant historical exchange rates (Select from the drop chown menus.) X Data table Bangkok Instruments, Ltd. Balance Sheet, March 1 Assets Liabilities & Net Worth Cash B22,000,000 Accounts payable B17,000,000 Accounts receivable 35,000,000 Bank loans 59,000,000 Inventory 46,000,000 Common stock 17,000,000 Net plant & equipment 60,000,000 Retained earnings 70,000,000 B163,000,000 B163,000,000 Click on the icon located on the top-right corner of the data table in order to copy its contents into a spreadsheet ABAND Data table Bangkok Instruments' Translation Gain (Loss) After Depreciation of the Baht: Current Rate Method March 31 April1 Exchange Translated Exchange Translated Assets In Bahts (B) Rate (B/S) Accounts ($) Rate (B/S) Accounts ($) Cash B22,000,000 33.00 $666,667 44.00 $500,000 Accounts receivable 35,000,000 33.00 1,060,606 44.00 795,455 Inventory 46,000,000 33.00 1,393,939 44.00 1,045,455 Net plant and equipment 60,000,000 33.00 1,818,182 44.00 1,363,636 Total B163,000,000 $4,939,394 $3,704,546 Liabilities and Net Worth Accounts payable B17,000,000 33.00 $515,152 44.00 $386,364 Bank loans 59,000,000 33.00 1,787,879 44.00 1,340,909 Common stock 17,000,000 23.00 739,130 23.00 739,130 Retained earnings 70,000,000 36.90 (a) 1,897,233 36.90 (6) 1,897,233 Translation adjustment (CTA) 2 ? Total B163,000,000 $4,939,394 $3,704,546 (a) Dollar retained earnings before depreciation are the cumulative sum of additions to retained earnings of all prior years, translated to exchange rates in each year. (6) Translated into dollars at the same rate as before depreciation of the baht. Data table Bangkok Instruments' Translation Gain (Loss) After Depreciation of the Baht: Temporal Method March 31 April1 Exchange Translated Exchange Translated Assets In Bahts (B) Rate (B/s) Accounts ($) Rate (B/$) Accounts ($) Cash B22,000,000 33.00 $666,667 44.00 $500,000 Accounts receivablo 35,000,000 33.00 1,060,606 44.00 795,455 Inventory 46,000,000 33.00 1,393,939 33.00 1,393,939 Net plant and equipment 60,000,000 23.00 2,608,696 23.00 2,608,696 Total B163,000,000 $5,729,908 $5,298,090 Liabilities and Net Worth Accounts payable B17,000,000 33.00 $515,152 44.00 $386,364 Bank loans 59,000,000 33.00 1,787,879 44.00 1,340,909 Common stock 17,000,000 23.00 739,130 23.00 739,130 Retained earnings 70,000,000 26.04 (6) 2,687,747 26.04 (6) 2,687,747 Translation gain (loss) (c) Total B163,000,000 $5,729,908 $5,298,090 (a) Dollar retained earnings bofore depreciation are the cumulativo sum of additions to retained earnings of all prior years, translated to exchange rates in each year, (b) Translated into dollars at the same rate as before depreciation of the baht. (c) Under the temporal method, the translation gain (losa) would be closed into retained earnings through the la Print Dana LIT Data table 0 Total d Bangkok Instruments' Translation Gain (Loss) After Depreciation of the Baht: Current Rate Method March 31 April1 Exchange Translated Exchange Translated Assets In Bahts (B) Rate (B/$) Accounts (s) Rate (B/s) Accounts ($) Cash B22,000,000 33.00 $666,667 44.00 $500,000 Accounts receivable 35,000,000 33.00 1,060,606 44.00 795,455 Inventory 46,000,000 33.00 1,393,939 44.00 1,045,455 Net plant and equipment 60,000,000 33.00 1,818,182 44.00 1,363,636 B163,000,000 $4,939,394 $3,704,546 Liabilities and Net Worth Accounts payable B17,000,000 33.00 $515,152 44.00 $386,364 Bank loans 59,000,000 33.00 1,787,879 44.00 1,340,909 Common stock 17,000,000 23.00 739,130 23.00 739,130 Retained earnings 70,000,000 36.90 (a) 1,897,23 36.90 (6) 1,897,233 Translation adjustment (CTA) ? ? Total B163,000,000 $4,939,394 $3,704,546 (a) Dollar retained earnings before depreciation are the cumulative sum of additions to retained earnings of all prior years, translated to exchange rates in each year. (b) Translated into dollars at the same rate as before depreciation of the baht. ba Data table Bangkok Instruments' Translation Gain (Loss) After Depreciation of the Baht: Temporal Method March 31 April1 Exchange Translated Exchange Translated Assets In Bahts (B) Rate (B/$) Accounts ($) Rate (B/S) Accounts () Cash B22,000,000 33.00 $666,667 44.00 $500,000 Accounts receivable 35,000,000 33.00 1,060,606 44.00 795,455 Inventory 46,000,000 33.00 1,393,939 33.00 1,393,939 Net plant and equipment 60,000,000 23.00 2,608,696 23.00 2,608,696 Total B163,000,000 $5,729,908 $5,298,090 Liabilities and Net Worth Accounts payable B17,000,000 33.00 $515,152 44.00 $386,364 Bank loans 59,000,000 33.00 1,787,879 44.00 1,340,909 Common stock 17,000,000 23.00 739,130 23.00 739,130 Retained earnings 70,000,000 26.04 (a) 2,687,747 26.04 (b) 2,687,747 Translation gain (loss) (c) Total B163,000,000 $5,729,908 $5,298,090 (a) Dollar retained earnings before depreciation are the cumulative sum of additions to retained earnings of all prior years, translated to exchange rates in each year, (b) Translated into dollars at the same rate as before depreciation of the baht. (e) Under the temporal method, the translation gain (losa) would be closed into retained earnings through the Print Done Bangkok Instruments, Ltd.(A). Bangkok Instruments, Ltd., the Thai subsidiary of a U.S.corporation, is a selsmic instrument manufacturer. Bangkok Instruments manufactures the instruments primarily for the ol and gas industry globally-though with recent commodity price increases of all kinds including copper, its business has begun to grow rapidly. Sales are primarily to multinational companies based in the United States and Europe, Bangkok Instruments' balance sheet in thousands of Thai bahts (B) as of March 31 is shown in the popup window. I Exchange rates for translating Bangkok Instruments' balance sheet into U.S. dollars are B44.00$ April 1 exchange rate after 25% devaluation B33.00/5 March 31 exchange rato, before 25% devaluation. All inventory was acquired at this rate B23,0015 Historic exchange rate at which plant and equipment were acquired The Thai baht dropped in value from B33.00/8 to 844.00/5 between March 31 and April 1. Assuming no change in balance sheet accounts between these two days, calculate the gain or loss from translation by both the current rate method and the temporal method. Bangkok Instruments translated balance sheet using the current rate method is shown here, and the one using the temporal method is shown hero, Explain the translation gain or loss in terms of changes in the value of exposed accounts Using the translated balance sheet under the current rate method, what is the amount of translation gain or loss? Enter a positive number for a gain and negative for a 105 Round to the nearest dollar Using the translated balance shoot under the temporal method, what is the amount of translation gain or low? Entor a positive number for a gain and negative for a (Round to the nearest dotor) The results in a translation gain, as opposed to the CTA loss found under the because of the different exchange rates used against met plant and equipment and the inventory line items. This gain would be impossible under the because all assets are exposed under that method, whereas the carries not plant and equipment and Inventory at relevant historical exchange rates (Select from the drop chown menus.) X Data table Bangkok Instruments, Ltd. Balance Sheet, March 1 Assets Liabilities & Net Worth Cash B22,000,000 Accounts payable B17,000,000 Accounts receivable 35,000,000 Bank loans 59,000,000 Inventory 46,000,000 Common stock 17,000,000 Net plant & equipment 60,000,000 Retained earnings 70,000,000 B163,000,000 B163,000,000 Click on the icon located on the top-right corner of the data table in order to copy its contents into a spreadsheet ABAND Data table Bangkok Instruments' Translation Gain (Loss) After Depreciation of the Baht: Current Rate Method March 31 April1 Exchange Translated Exchange Translated Assets In Bahts (B) Rate (B/S) Accounts ($) Rate (B/S) Accounts ($) Cash B22,000,000 33.00 $666,667 44.00 $500,000 Accounts receivable 35,000,000 33.00 1,060,606 44.00 795,455 Inventory 46,000,000 33.00 1,393,939 44.00 1,045,455 Net plant and equipment 60,000,000 33.00 1,818,182 44.00 1,363,636 Total B163,000,000 $4,939,394 $3,704,546 Liabilities and Net Worth Accounts payable B17,000,000 33.00 $515,152 44.00 $386,364 Bank loans 59,000,000 33.00 1,787,879 44.00 1,340,909 Common stock 17,000,000 23.00 739,130 23.00 739,130 Retained earnings 70,000,000 36.90 (a) 1,897,233 36.90 (6) 1,897,233 Translation adjustment (CTA) 2 ? Total B163,000,000 $4,939,394 $3,704,546 (a) Dollar retained earnings before depreciation are the cumulative sum of additions to retained earnings of all prior years, translated to exchange rates in each year. (6) Translated into dollars at the same rate as before depreciation of the baht. Data table Bangkok Instruments' Translation Gain (Loss) After Depreciation of the Baht: Temporal Method March 31 April1 Exchange Translated Exchange Translated Assets In Bahts (B) Rate (B/s) Accounts ($) Rate (B/$) Accounts ($) Cash B22,000,000 33.00 $666,667 44.00 $500,000 Accounts receivablo 35,000,000 33.00 1,060,606 44.00 795,455 Inventory 46,000,000 33.00 1,393,939 33.00 1,393,939 Net plant and equipment 60,000,000 23.00 2,608,696 23.00 2,608,696 Total B163,000,000 $5,729,908 $5,298,090 Liabilities and Net Worth Accounts payable B17,000,000 33.00 $515,152 44.00 $386,364 Bank loans 59,000,000 33.00 1,787,879 44.00 1,340,909 Common stock 17,000,000 23.00 739,130 23.00 739,130 Retained earnings 70,000,000 26.04 (6) 2,687,747 26.04 (6) 2,687,747 Translation gain (loss) (c) Total B163,000,000 $5,729,908 $5,298,090 (a) Dollar retained earnings bofore depreciation are the cumulativo sum of additions to retained earnings of all prior years, translated to exchange rates in each year, (b) Translated into dollars at the same rate as before depreciation of the baht. (c) Under the temporal method, the translation gain (losa) would be closed into retained earnings through the la Print Dana LIT Data table 0 Total d Bangkok Instruments' Translation Gain (Loss) After Depreciation of the Baht: Current Rate Method March 31 April1 Exchange Translated Exchange Translated Assets In Bahts (B) Rate (B/$) Accounts (s) Rate (B/s) Accounts ($) Cash B22,000,000 33.00 $666,667 44.00 $500,000 Accounts receivable 35,000,000 33.00 1,060,606 44.00 795,455 Inventory 46,000,000 33.00 1,393,939 44.00 1,045,455 Net plant and equipment 60,000,000 33.00 1,818,182 44.00 1,363,636 B163,000,000 $4,939,394 $3,704,546 Liabilities and Net Worth Accounts payable B17,000,000 33.00 $515,152 44.00 $386,364 Bank loans 59,000,000 33.00 1,787,879 44.00 1,340,909 Common stock 17,000,000 23.00 739,130 23.00 739,130 Retained earnings 70,000,000 36.90 (a) 1,897,23 36.90 (6) 1,897,233 Translation adjustment (CTA) ? ? Total B163,000,000 $4,939,394 $3,704,546 (a) Dollar retained earnings before depreciation are the cumulative sum of additions to retained earnings of all prior years, translated to exchange rates in each year. (b) Translated into dollars at the same rate as before depreciation of the baht. ba Data table Bangkok Instruments' Translation Gain (Loss) After Depreciation of the Baht: Temporal Method March 31 April1 Exchange Translated Exchange Translated Assets In Bahts (B) Rate (B/$) Accounts ($) Rate (B/S) Accounts () Cash B22,000,000 33.00 $666,667 44.00 $500,000 Accounts receivable 35,000,000 33.00 1,060,606 44.00 795,455 Inventory 46,000,000 33.00 1,393,939 33.00 1,393,939 Net plant and equipment 60,000,000 23.00 2,608,696 23.00 2,608,696 Total B163,000,000 $5,729,908 $5,298,090 Liabilities and Net Worth Accounts payable B17,000,000 33.00 $515,152 44.00 $386,364 Bank loans 59,000,000 33.00 1,787,879 44.00 1,340,909 Common stock 17,000,000 23.00 739,130 23.00 739,130 Retained earnings 70,000,000 26.04 (a) 2,687,747 26.04 (b) 2,687,747 Translation gain (loss) (c) Total B163,000,000 $5,729,908 $5,298,090 (a) Dollar retained earnings before depreciation are the cumulative sum of additions to retained earnings of all prior years, translated to exchange rates in each year, (b) Translated into dollars at the same rate as before depreciation of the baht. (e) Under the temporal method, the translation gain (losa) would be closed into retained earnings through the Print Done