Mich e consid Ganado Europe (A) Using facts in the chapter for Ganado Europe, assume the exchange rate on January 2, 2016 in Exhibit 11 5 dropped in value from $1.1700 to $0.92001. Recalculate Ganado Europe's translated balance sheet for January 2, 2016, with the new exchange rate using the current rate method as shown in the popup window. B a. What is the amount of translation gain or loss? b. Where should it appear in the financial statements? a. What is the amount of translation gain or loss? Enter a positive number for again and negative for a loss s, Leon ect from th $ (Round to the nearest dollar.) b. Where should it appear in the financial statements? (Select the best choice below) in. I just resu O A. The translation gain (loss) for the year is added to the balance in the Total Liabilities and Net Worth account O B. The translation gain (los) for the year is added to the balance in the Total Assets account O C. The translation gain (loss) for the year is added to the balance in the Cumulative Translation Adjustment (CTA) account OD. The translation gain (ons) for the year is added to the balance in the Retained Earnings account mi Law... ase enter thes no A ature Cordialme $0.92001 popup wil Data Table - X the a. What b. Where a. What is (RO b. Where Total OAT OBT OCT OD. EXHIBIT 11.5 Ganado Europe's Translation Loss After Depreciation of the Euro: Current Rate Method December 31, 2015 January 2, 2016 Exchange Rate Translated Exchange Rate Translated Assets In Euros (6) (USS/euro) Accounts (USS) (USS/euro) Accounts (USS) Cash 1,800,000 1.1700 $2,106,000 0.9200 $1,656,000 Accounts receivable 3,200,000 1.1700 3,744,000 0.9200 2,944,000 Inventory 2,100,000 1.1700 2.457.000 0 9200 1,932,000 Net plant and equipment 5,000,000 1.1700 5,850,000 0.9200 4,600,000 12,100,000 $14,157,000 $11, 132,000 Liabilities and Net Worth Accounts payable 500,000 1.1700 $585,000 0.9200 $460,000 Short-term bank debt 1.900.000 1.1700 2,223,000 0.9200 1,748,000 Long term debt 1,500,000 1.1700 1,755,000 0.9200 1,380,000 Common stock 1.700.000 12210 2,075,700 12210 2,075,700 6,500,000 Retained earnings 1.1700 (a) 7.605,000 7,605,000 1.1700 (b) Translation adjustment (CTA) (86,700) 2.136.700) Total 12,100,000 $14,157,000 511,132,000 (a) Dolar retained earnings before depreciation are the cumulative sum of additions to retained earings of all prior years, translated to exchange rates in each year. (b) Translated into dollars at the same rate as before depreciation of the euro. Click on the icon located on the top right corner of the data fable in order to copy its contents into a spreadsheet er thes ordialme Money Add Print Done Click to SA at Corel G ment rything Rahul M
