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Gila Sailing and Fishing, Inc. (Gila), is a subsidiary of Sea of Cortez Unlimited Boating Adventures, Inc. (Cortez), a multinational organization headquartered in Tempe, Arizona.
Gila Sailing and Fishing, Inc. (Gila), is a subsidiary of Sea of Cortez Unlimited Boating Adventures, Inc. (Cortez), a multinational organization headquartered in Tempe, Arizona. Gila is located in the Sonora Valley and sells fishing trips off the coast of the Sea of Cortez. Cortez accounts for Gila using the temporal method. Gila's current balance sheet (denominated in pesos) is as follows: Cash Accounts receivable Fixed assets Total assets Accounts payable Deferred revenue Long-term debt Equity Total liabilities and equity 1,000,000 11,000,000 43.000.000 55,000,000 21. 9,000,000 2,000,000* 8,000,000 36.000.000 55,000,000 * Note: Deferred revenue relates to a wealthy customer who paid for several trips in advance but has been unable to find enough spare time to come back to Sonora. Nonmonetary assets less nonmonetary liabilities are: A. 5,000,000. B. 41,000,000. C. 43,000,000
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