Models should use formulas where it is necessary (point of models is to automate the work). Create
Fantastic news! We've Found the answer you've been seeking!
Question:
Models should use formulas where it is necessary (point of models is to automate the work). Create model so the user can simply enter whatever ending rate they desire, and the model computes the translation adjustment automatically. Highlight in yellow the cells that the user can update AND the model updates automatically.
Transcribed Image Text:
Exhibit 11.5 Ganado Europe's Translation Loss After Depreciation of the Euro: Current Rate Method December 31, 2015 Assets Cash Accounts receivable Inventory Net plant and equipment Total Liabilities and Net Worth Accounts payable Short-term bank debt Long-term debt Common stock Retained earnings Translation adjustment (CTA) Total In Euros (€) 1,600,000 3,200,000 2,400,000 4,800,000 12,000,000 800,000 1,600,000 1,600,000 1,800,000 6,200,000 12,000,000 Exchange Rate (US$/euro) 1.2000 1.2000 1.2000 1.2000 1.2000 1.2000 1.2000 1.2760 1.2000(a) Translated Accounts (b) Translated into dollars at the same rate as before depreciation of the euro. (US$) $ 1,920,000 3,840,000 2,880,000 5,760,000 $14,400,000 $ 960,000 1,920,000 1,920,000 2,296,800 7,440,000 $ (136,800) $14,400,000 Exchange Rate (US$/euro) 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.2760 January 2, 2016 1.2000(b) Translated Accounts (US$) $1,600,000 3,200,000 2,400,000 4,800,000 $12,000,000 $ 800,000 1,600,000 1,600,000 2,296,800 7,440,000 $(1,736,800) $12,000,000 (a) Dollar retained earnings before depreciation are the cumulative sum of additions to retained earnings of all prior years, translated at exchange rates in each year. Exhibit 11.5 Ganado Europe's Translation Loss After Depreciation of the Euro: Current Rate Method December 31, 2015 Assets Cash Accounts receivable Inventory Net plant and equipment Total Liabilities and Net Worth Accounts payable Short-term bank debt Long-term debt Common stock Retained earnings Translation adjustment (CTA) Total In Euros (€) 1,600,000 3,200,000 2,400,000 4,800,000 12,000,000 800,000 1,600,000 1,600,000 1,800,000 6,200,000 12,000,000 Exchange Rate (US$/euro) 1.2000 1.2000 1.2000 1.2000 1.2000 1.2000 1.2000 1.2760 1.2000(a) Translated Accounts (b) Translated into dollars at the same rate as before depreciation of the euro. (US$) $ 1,920,000 3,840,000 2,880,000 5,760,000 $14,400,000 $ 960,000 1,920,000 1,920,000 2,296,800 7,440,000 $ (136,800) $14,400,000 Exchange Rate (US$/euro) 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.2760 January 2, 2016 1.2000(b) Translated Accounts (US$) $1,600,000 3,200,000 2,400,000 4,800,000 $12,000,000 $ 800,000 1,600,000 1,600,000 2,296,800 7,440,000 $(1,736,800) $12,000,000 (a) Dollar retained earnings before depreciation are the cumulative sum of additions to retained earnings of all prior years, translated at exchange rates in each year.
Expert Answer:
Answer rating: 100% (QA)
To create a model that automates the computation of translation adjustments based on the desired ending rate we can use Excel Heres a stepbystep guide ... View the full answer
Related Book For
Discrete Mathematics and Its Applications
ISBN: 978-0073383095
7th edition
Authors: Kenneth H. Rosen
Posted Date:
Students also viewed these accounting questions
-
What are some applications where it is necessary to find the length of a longest simple path between two vertices in a weighted graph?
-
This is a simple purchasing game. You work for a large food processing company and your goal is to purchase as much wheat as possible either on the domestic market or on the international market. In...
-
Should Investors Care about an MNCs Translation Exposure? Point No. The present value of an MNCs cash flows is based on the cash flows that the parent receives. Any impact of the exchange rates on...
-
9. Let x = (1.11... 111000...) 26, in which the fractional part has 26 1's followed by O's. For the Marc-32, determine x, x+, f(x), x-xx-x, xx, and lx-fl(x)/x.
-
KP Inc. is negotiating a 10-year lease for three floors of space in a commercial office building. KP cant use the space unless a security system is installed. The cost of the system is $50,000, and...
-
Solve the indicated or given systems of equations by an appropriate algebraic method. A 6.0% solution and a 15.0% solution of a drug are added to 200 mL of a 20.0% solution to make 1200 mL of a 12.0%...
-
Describe how taxes have an impact on financial planning.
-
Refer to the data for Beech Corporation in Exercise 812. The company is considering making the following changes to the assumptions underlying its master budget: In Exercise 812 Beech Corporation is...
-
ANSWER THE FF . D Question 34 1.5 pts Items 34 -35 are based on the following information - A company sells four products: I, II, Ill, and IV. The company values all inventories using th...
-
Nine subjects were used in an experiment to determine if an atmosphere involving exposure to carbon monoxide has an impact on breathing capability. The data were collected by personnel in the Health...
-
All of the following should be considered in a make-or-buy decision except Oa. future growth in the plant and other production opportunities Ob. whether the supplier will make a profit that would no...
-
What does a database administrator (DBA) do? Please explain their output using below 1. Process 2. Dealings with internal customers 3. Financial impact i.e. cost containment or budget or revenue
-
What is the best way to analyze database indexes so that they run in an optimal fashion. Give examples
-
Musa Alabi started business with a capital of $ 1 0 0 , 0 0 0 on 1 s t January 2 0 2 0 . The following information was provided as his transactions for the month of January, 2 0 2 0 : 5 t h Jan:...
-
Net Present Value and Competing Projects Follow the format shown in Exhibit 12B.1 and Exhibit 12B.2 as you complete the requirements below. Spiro Hospital is investigating the possibility of...
-
what is index , How a database index can help performance, explain in a detail way .?
-
11:33 ... 5GUC l 33%| Week 2 P... 170698 - - - Provide the appropriate datum feature symbols and datum features in the feature control frames on the drawing (do this in AutoCAD) - Save as a .dwg file...
-
we have to compute the letter grades for a course. The data is a collection of student records stored in a file. Each record consists of a name(up to 20 characters), ID (8 characters), the scores of...
-
Answer these questions about the rooted tree illustrated. a) Which vertex is the root? b) Which vertices are internal? c) Which vertices are leaves? d) Which vertices are children of j? e) Which...
-
Adapt the proof in the text that there are infinitely many primes to prove that there are infinitely many primes of the form 4k + 3, where k is a nonnegative integer.
-
How many 6-element RNA sequences a) Do not contain U? b) End with GU? c) Start with C? d) Contain only A or U?
-
A Mrs T Hulley is paid monthly. For part of April 19X6 she earns 860 and then goes on maternity leave, her maternity pay for April being 90. She has pay free of tax 320, whilst on the next 250 she...
-
A P Urmston is paid monthly. For June 19X6 he earns 1,500 and also receives statutory sick pay of 150. He pays 90 superannuation which is allowed as a relief against income tax and he has further...
-
The data which follows was extracted from the books of account of H Kirk, an engineer, on 31 March 19X6, his financial year end. You are required to allocate each or part of the items above to either...
Study smarter with the SolutionInn App