Chapter 10 Analysis of Foreign Financial Statements Question #23-25: Financial statements for Argo Company were restated from local GAAP to U.S. GAAP ARGO COMPANY Worksheet for Restatement of Income and Retained Earnings to U.S. GAAP for Year Ended Dec. 31, 2015 Millions of Crowns (hypothetical currency) Local GAAP 9,148 (5.163) 3,985 453) US. GAAP 9,148 (4,994) 4,154 350) 3,804 Cost of goods sold Operating income... 3,532 Other income (expense), net Income before income taxes.... 132 3,508 (1052) 2,456 4,276 ( 340) 3,607 (1081) 2,526 Dividends Retained earnings, Dec. 31 6,770 ARGO COMPANY Worksheet for Restatement of Balance Sheet to U.S. GAAP for Year Ended Dec. 31, 2015 Millions of Crowns (hypothetical currency)Local GAAPUS. GAAP 1,704 2,798 276 9,778 11,807 1,305 436 1,704 2,798 5,464 9,966 11,685 1,243 394 as Inventories . Property, plant, and eamt, net Accounts payable Accrued expenses 745 1,591 745 1,591 100 340 204 2,980 266 Total current liabilities 2,702 5,000 5,000 Other long-term liabilities 996 8,875 150 8,055 6,392 200 150 8,055 6,770 0 0 (562) (119) (500) Unrealized gains (losses).. 23 326