Question
On January 1, 2019, Parker, Inc., a U.S.-based firm, formed a wholly owned subsidiary Suffolk PLC located in Great Britain. Relevant exchange rates are listed
On January 1, 2019, Parker, Inc., a U.S.-based firm, formed a wholly owned subsidiary Suffolk PLC located in Great Britain. Relevant exchange rates are listed below:
January 1, 2019 . . . . . . . . . . . . . . . . . . . . . . . 1= $ 1.30
January 1, 2020 . . . . . . . . . . . . . . . . . . . . . . . 1= $ 1.31
January 30, 2020 . . . . . . . . . . . . . . . . . . . . . . 1= $ 1.32
Average for 2020 . . . . . . . . . . . . . . . . . . . . . .. 1= $ 1.33
December 31, 2020 . . . . . . . . . . . . . . . . . . . ... 1= $ 1.36
Suffolks functional currency is British pound (GBP). Suppose sales are made evenly throughout the year. As of January 1, 2020, the retained earnings balance was translated as $10,560. Dividends are declared on Jan 30, 2020. Credit balances are indicated by parentheses.
GBP | USD | ||
Income Statement | |||
Sales | (28,000) | ? | |
Cost of Goods Sold | 16,000 | ||
Depreciation expense | 2,000 | ? | |
Other expenses | 6,000 | ||
Net income | (4,000) | ||
Statement of Retained Earnings | |||
Retained earnings, 1/1/2020 | (8,000) | ||
Net income | (4,000) | ? | |
Dividends paid | 1,750 | ? | |
Retained earnings, 12/31/2020 | (10,250) | ? | |
Balance Sheet | |||
Cash | 1,500 | ||
Accounts receivable | 5,200 | ||
Inventory | 18,000 | ? | |
Equipment (net) | 36,000 | ? | |
Total assets | 60,700 | ? | |
Accounts Payable | (1,450) | ||
Long-term debt | (5,000) | ||
Common stock | (44,000) | ? | |
Retained earnings, 12/31/2020 | (10,250) | ||
Cumulative translation adjustment | ? | ||
Total liabilities and equity | (60,700) |
- What are translated Sales in U.S. dollars?
- Use the same information in Question. What is translated Depreciation expense in U.S. dollars?
- Use the same information in Question. What is translated Net income in U.S. dollars?
- Use the same information in Question. What are translated Dividends paid in U.S. dollars?
- Use the same information in Question. What are translated Retained earnings (as of 12/31/2020) in U.S. dollars?
- Use the same information in Question. What is translated Inventory in U.S. dollars?
- Use the same information in Question What is equipment (net) U.S. dollars?
- Use the same information in Question. What are translated Total assets in U.S. dollars?
- Use the same information in Question. What is translated Common stock in U.S. dollars?
- Use the same information in Question . What is Cumulative translation adjustment (as of 12/31/2020)?
With the given information please answer ques 1-10. asap, thank you!
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