Question
Consider the following data on Pindus Co. and use the current rate method of FASB #52 to answer the next question . BALANCE SHEET (in
Consider the following data on Pindus Co. and use the current rate method of FASB #52 to answer thenext question.
BALANCE SHEET (in Baht, Thai currency)
Assets
Liabilities and Equity
Cash1800
Accounts Payable900
Inventory2700
Short-term Notes Payable900
Accounts Receivable3600
Long-term Debt2400
Net Fixed Assets3600
Capital Stock7500
Total Assets11,700
Total Liabilities + Equity11,700
Suppose the current spot rate is Baht 50/$ and Baht is expected to depreciate against dollar to Baht 60/$.The historical exchange rate is Baht 42.857/$.There are no retained earnings.
The translation exposure is:
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Principles Of Managerial Finance
Authors: Lawrence J. Gitman, Chad J. Zutter
13th Edition
9780132738729, 136119468, 132738724, 978-0136119463
