Business Course Return to course - My Subscriptions Gavin Murphy Remeasurement of inancial statements Assume that your company owns a subsidiary operating in Canada. The subsidiary has adopted the Canadian Dollar (CAD) as its functional currency. Your parent company operates this subsidiary like a division or a branch office making all of its operating decisions, including pricing of its products. You conclude therefore, that the functional currency of this subsidiary is the US and that its financial statements must be remeasured using the temporal method prior to consolidation The subsidiary's financim statements in CAD) for the most recent year follow in part a. below. The relevant exchange rates for the sus value of the Canadian Dollar (CAD) are as follows: BOY rate 50.95 EGY rate $1.05 Aver 50.98 Dividend te 51.04 Hotoncartes Beginning inventory $0.95 Land 50.70 Buong 10.72 Equipment $0.93 Histocarate common stock and APC 50 50 Support For parts a, and b.below, use a negative sign with answers to indicate a reduction a. Remeasure the subsidiary's income statement statement of retained earnings and balance sheet into SUS using the temporal method for the current year assume that the BOY Retained Earnings is 53.833,850) Round all answers in the "in US Dollars" column to the nearest dolar. Remeasurement in in AUDI Rate US Dollars Beprving inventory 52.235.000 Purchases 7.000 1.18 0 Ending inventory 12,682,000 0 0 Cost of foods sold 55.400.000 5 0 Land 51.960.800 OS Building 3,600,000 0 0 Q a Remeasure the subsidiary's income statement, statement of retained earnings, and balance sheet BOY Retained Earnings is $3,833,850), Round all answers in the "in US Dollars" column to the nearest dollar in Remeasurement (in AUD) Rate US Dollars 0 1.185 $2.235.000 Beginning inventory 5,847,000 1.18 Putches 0 (2.682,000) 0 0 Ending inventory $ 0 55,400,000 Cost of goods sold $5,960,800 0 $ Land 0 Building 3,600,000 0 0 Accum.deprec-building 11,800,000) 0 0 Fouipment 2,400,000 0 0 Accum deprec-equipment (1,200,000 0 0 Property, plant and equipment (PPELnet 14.960,800 5 0 Depreciation expense-building $180,000 05 0 Depreciation expense equipment 240.000 0 0 Deprecation expense $420,000 5 Income statement: Sales 59,000,000 05 0 Cost of goods sold 5.400,000 0 Gruss proft 3.600,000 0 Operating expenses 11.920,000) 0 0 Deprecation (420,000 0 0 Net income 51.260,000 5 0 Statement of retained earnings Botinemings 14725.000 $ Not income 0 1.200.000 Dividends 0 0 15.159.000 0 1125.000 Endingan $ Q 3 5 6 8 E R S F G $ 0 0 0 0 $ 0 0 $ 0 Statement of retained earnings: $4,725,000 BOY retained earnings Net income 1,260,000 Dividends (126,000) Ending retained earnings $5,859,000 Balance sheet: Assets Cash $2,561,400 Accounts receivable 2,088,000 Inventory 2,682,000 Property, plant, and equipment (PPE).net 4,960,800 Total assets $12,292,200 Liabilities and stockholders' equity Current liabilities $1,526,400 Long-term liabilities 3,556,800 Common stock 600,000 APIC 750,000 5,859,000 $12,292,200 OOOO $ 0 0 0 $ 0 0 0 0 Retained earnings Total liabilities and equity 0 0 $ 0 0 b. A Compute the remeasurement gain or loss directly assuming BOY net monetary assets of (1,5 Round all answers to the nearest dollar. Change in net monetary assets: 5 Chemie monetary assets x (EOY - Avg exchange rate) 0 0 Check $ 0 0 esc Business Course Return to course - My Subscriptions Gavin Murphy Remeasurement of inancial statements Assume that your company owns a subsidiary operating in Canada. The subsidiary has adopted the Canadian Dollar (CAD) as its functional currency. Your parent company operates this subsidiary like a division or a branch office making all of its operating decisions, including pricing of its products. You conclude therefore, that the functional currency of this subsidiary is the US and that its financial statements must be remeasured using the temporal method prior to consolidation The subsidiary's financim statements in CAD) for the most recent year follow in part a. below. The relevant exchange rates for the sus value of the Canadian Dollar (CAD) are as follows: BOY rate 50.95 EGY rate $1.05 Aver 50.98 Dividend te 51.04 Hotoncartes Beginning inventory $0.95 Land 50.70 Buong 10.72 Equipment $0.93 Histocarate common stock and APC 50 50 Support For parts a, and b.below, use a negative sign with answers to indicate a reduction a. Remeasure the subsidiary's income statement statement of retained earnings and balance sheet into SUS using the temporal method for the current year assume that the BOY Retained Earnings is 53.833,850) Round all answers in the "in US Dollars" column to the nearest dolar. Remeasurement in in AUDI Rate US Dollars Beprving inventory 52.235.000 Purchases 7.000 1.18 0 Ending inventory 12,682,000 0 0 Cost of foods sold 55.400.000 5 0 Land 51.960.800 OS Building 3,600,000 0 0 Q a Remeasure the subsidiary's income statement, statement of retained earnings, and balance sheet BOY Retained Earnings is $3,833,850), Round all answers in the "in US Dollars" column to the nearest dollar in Remeasurement (in AUD) Rate US Dollars 0 1.185 $2.235.000 Beginning inventory 5,847,000 1.18 Putches 0 (2.682,000) 0 0 Ending inventory $ 0 55,400,000 Cost of goods sold $5,960,800 0 $ Land 0 Building 3,600,000 0 0 Accum.deprec-building 11,800,000) 0 0 Fouipment 2,400,000 0 0 Accum deprec-equipment (1,200,000 0 0 Property, plant and equipment (PPELnet 14.960,800 5 0 Depreciation expense-building $180,000 05 0 Depreciation expense equipment 240.000 0 0 Deprecation expense $420,000 5 Income statement: Sales 59,000,000 05 0 Cost of goods sold 5.400,000 0 Gruss proft 3.600,000 0 Operating expenses 11.920,000) 0 0 Deprecation (420,000 0 0 Net income 51.260,000 5 0 Statement of retained earnings Botinemings 14725.000 $ Not income 0 1.200.000 Dividends 0 0 15.159.000 0 1125.000 Endingan $ Q 3 5 6 8 E R S F G $ 0 0 0 0 $ 0 0 $ 0 Statement of retained earnings: $4,725,000 BOY retained earnings Net income 1,260,000 Dividends (126,000) Ending retained earnings $5,859,000 Balance sheet: Assets Cash $2,561,400 Accounts receivable 2,088,000 Inventory 2,682,000 Property, plant, and equipment (PPE).net 4,960,800 Total assets $12,292,200 Liabilities and stockholders' equity Current liabilities $1,526,400 Long-term liabilities 3,556,800 Common stock 600,000 APIC 750,000 5,859,000 $12,292,200 OOOO $ 0 0 0 $ 0 0 0 0 Retained earnings Total liabilities and equity 0 0 $ 0 0 b. A Compute the remeasurement gain or loss directly assuming BOY net monetary assets of (1,5 Round all answers to the nearest dollar. Change in net monetary assets: 5 Chemie monetary assets x (EOY - Avg exchange rate) 0 0 Check $ 0 0 esc