need help with incorrect parts
Translation of financial statements Assume that your company owns a subsidiary operating in Mexico. The subsidiary maintains its books in the Mexican Peso as its functional currency. The subsidiary's financial statements (in Pesos) for the most recent year follow in a. below: The relevant exchange rates ($:Peso) are as follows: BOY rate $0.080 EOY rate $0.090 Avg. rate $0.085 PPE purchase date rate $0.086 LTD borrowing date rate $0.089 Dividend rate $0.087 Historical rate (common stock and APIC) $0.060 For both parts a. and b. below, use a negative sign with answers to indicate a reduction. a. Translate the subsidiary's income statement, statement of retained earnings, balance sheet, and statement of cash flows into SUS using the current-rate method (assume that the BOY Retained Earnings is 570,5031 Round all answers in the "in US Dollars" column to the nearest dollar. Translation Rate 0.085S 0.085 Income Statement Sales Cost of goods sold Gel Operating expenses Ner income Statement of Retained Earnings: BOY ret, earnings In Pesos 1.930,000 11,170.000 780,000 1507.000 $273.000 US Dollars 165.750 (99,450) 66,300 (13,095) 23.205 0.085 $ 5 70.503 Nclinic $1,023,750 277,000 127,3001 $1,269,450 0.087 $ (2,375) 1,333 Dividers COY ret. earnings Balance Sheet: Assets 0.09 S $5.54,970 132.100 5a1,100 1,074,840 52.663,310 0.09 0.09 49,947 10./16 52.299 96.736 239.698 $ S Accounts receivable Inventory Property plant and equipment (PPE) net Tocal assets Habili.isanki chollers' uily Current liabilities L-T liabilities Common stock APIC Re Cumulative translation adjustment Total liabilities and ecuity 770,640 130.000 162,500 1,269,450 0.09 0.09 0.06 0.06 29./65 59.358 7.800 9.750 91,233 30.195 238,199 x 52.661.110 $ $ 0.085 0.085 0.085 0.085 Statement of Cash Flows: Net income Change in accounts receivable Change in inventories Change in current liabilities Net cash from operating activities Change in PPC, net Net cash from investing activities Change in long-term deht Dividends Net cash from financing activities Net change in cash Cumulative translation adjustment Beginning cash Ending cash $273,000 (75,400) (96,850) 55,120 155,870 (99,840) (99,840) 128,440 (27,300) 101,140 157,170 0.086 23,205 (0,409) (8,232) 4,685 13,249 (8,586) (4,586) 11,431 (2,375) 9,056 13,719 4,405 X 31,824 19,917 0.087 x 0.08 397,800 $59.970 $ b. Compute the ending Cumulative Translation Adjustment directly, assuming a BOY balance of $17,246. Round the BOY net assets to reconcile the cumulative translation adjustment. Round all answers to the nearest dollar. $ Direct computation of translation adjustment: BOY net assets x (EOY - BOY exchange rates) Net income (EOY - Average exchange rate) Dividends x (EOY - Dividend exchange rate) . BOY currulative translation adjustrient EOY cumulative translation adjustment Translation of financial statements Assume that your company owns a subsidiary operating in Mexico. The subsidiary maintains its books in the Mexican Peso as its functional currency. The subsidiary's financial statements (in Pesos) for the most recent year follow in a. below: The relevant exchange rates ($:Peso) are as follows: BOY rate $0.080 EOY rate $0.090 Avg. rate $0.085 PPE purchase date rate $0.086 LTD borrowing date rate $0.089 Dividend rate $0.087 Historical rate (common stock and APIC) $0.060 For both parts a. and b. below, use a negative sign with answers to indicate a reduction. a. Translate the subsidiary's income statement, statement of retained earnings, balance sheet, and statement of cash flows into SUS using the current-rate method (assume that the BOY Retained Earnings is 570,5031 Round all answers in the "in US Dollars" column to the nearest dollar. Translation Rate 0.085S 0.085 Income Statement Sales Cost of goods sold Gel Operating expenses Ner income Statement of Retained Earnings: BOY ret, earnings In Pesos 1.930,000 11,170.000 780,000 1507.000 $273.000 US Dollars 165.750 (99,450) 66,300 (13,095) 23.205 0.085 $ 5 70.503 Nclinic $1,023,750 277,000 127,3001 $1,269,450 0.087 $ (2,375) 1,333 Dividers COY ret. earnings Balance Sheet: Assets 0.09 S $5.54,970 132.100 5a1,100 1,074,840 52.663,310 0.09 0.09 49,947 10./16 52.299 96.736 239.698 $ S Accounts receivable Inventory Property plant and equipment (PPE) net Tocal assets Habili.isanki chollers' uily Current liabilities L-T liabilities Common stock APIC Re Cumulative translation adjustment Total liabilities and ecuity 770,640 130.000 162,500 1,269,450 0.09 0.09 0.06 0.06 29./65 59.358 7.800 9.750 91,233 30.195 238,199 x 52.661.110 $ $ 0.085 0.085 0.085 0.085 Statement of Cash Flows: Net income Change in accounts receivable Change in inventories Change in current liabilities Net cash from operating activities Change in PPC, net Net cash from investing activities Change in long-term deht Dividends Net cash from financing activities Net change in cash Cumulative translation adjustment Beginning cash Ending cash $273,000 (75,400) (96,850) 55,120 155,870 (99,840) (99,840) 128,440 (27,300) 101,140 157,170 0.086 23,205 (0,409) (8,232) 4,685 13,249 (8,586) (4,586) 11,431 (2,375) 9,056 13,719 4,405 X 31,824 19,917 0.087 x 0.08 397,800 $59.970 $ b. Compute the ending Cumulative Translation Adjustment directly, assuming a BOY balance of $17,246. Round the BOY net assets to reconcile the cumulative translation adjustment. Round all answers to the nearest dollar. $ Direct computation of translation adjustment: BOY net assets x (EOY - BOY exchange rates) Net income (EOY - Average exchange rate) Dividends x (EOY - Dividend exchange rate) . BOY currulative translation adjustrient EOY cumulative translation adjustment
