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Part A Part B Part C Triofind, Inc. (Triofind), based in the country of Norvolt, provides wireless services to various countries, including Norvolt, Borliand, Abuelio,

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Part A

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Part B

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Part C

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Triofind, Inc. (Triofind), based in the country of Norvolt, provides wireless services to various countries, including Norvolt, Borliand, Abuelio, and Certait. The company's presentation currency is the Norvolt euro (NER), and Triofind complies with IFRS. Triofind has two wholly owned subsidiaries, located in Borliand and Abuelio. The Borliand subsidiary (Triofind-B) was established on June 30, 2016, by Triofind both investing NER1,000,000, which was converted into Borliand dollars (BRD), and borrowing an additional BRD500,000. Marie Janssen, a financial analyst in Triofind's Norvolt headquarters office, translates Triofind-B's financial statements using the temporal method. Non-monetary assets are measured at cost under the lower of cost or market rule. Spot BRD/NER exchange rates are presented in Exhibit 1, and the balance sheet for Triofind-B is presented in Exhibit 2. Exhibit 1 Spot BRD/NER Exchange Rates Date June 30, 2016 Weighted average rate when inventory was acquired (2016) December 31, 2016 Weighted-average rate when inventory was acquired (2017) June 30, 2017 BRD per NER 1.15 1.19 1.20 1.18 1.17 Exhibit 2 Triofind-B Balance Sheet for 2016 and 2017 (BRD) Assets December 31, June 30, 2017 Liabilities and December 31, June 30, 2016 Stockholders' Equity 2016 2017 Cash 900,000 1,350,000 Notes payable 500,000 500,000 Inventory 750,000 500,000 Common Stock 1,150,000 1,150,000 Retained earnings 200.000 Total 1,650,000 1,850,000 Total 1.650.000 1,850,000 Janssen next analyzes Triofind's Abuelio subsidiary (Triofind-A), which uses the current rate method to translate its results into Norvolt euros. Triofind-A, which prices its goods in Abuelio pesos (ABP), sells mobile phones to a customer in Certait on May 31, 2017 and receives payment of 1 million Certait rand (CRD) on July 31, 2017. On May 31, 2017, Triofind-A also received NER50,000 from Triofind and used the funds to purchase a new warehouse in Abuelio. Janssen translates the financial statements of Triofind-A as of July 31, 2017 and must determine the appropriate value for the warehouse in Triofind's presentation currency. She observes that the cumulative Abuelio inflation rate exceeded 100% from 2015 to 2017. Spot exchange rates and inflation data are presented in Exhibit 3. Date NER per CRD NER per ABP May 31, 2017 June 30, 2017 July 31, 2017 0.2667 0.2703 0.2632 0.0496 0.0388 0.0312 Abuelio Monthly Inflation Rate (%) 0 25 22 Janssen gathers corporate tax rate data and company disclosure information to include in Triofind's annual report. She determines that the corporate tax rates for Abuelio, Norvolt, and Borliand are 35%, 34%, and 0%, respectively, and that Norvolt exempts the non-domestic income of multinationals from taxation. Triofind-B constitutes 25% of Triofind's net income, and Triofind-A constitutes 15%. Janssen also gathers data on components of net sales growth in different countries, presented in Exhibit 4. Exhibit 4 Components of Net Sales Growth (%) Fiscal Year 2017 Country Net Sales Growth Foreign Currency Exchange Abuelio Borliand Norvolt Contribution from Volume Growth 7 4 7 Contribution from Price Growth 6 5 3 4 0 11 13 10 Based on Exhibit 3, the value of the new warehouse in Abuelio on Triofind's balance sheet as of July 31, 2017 is closest to: a) NER31,452. b) NER47,964. OC) NER50,000 Based on Exhibits 1 and 2 and Janssen's translation method, total assets for Triofind-B translated into Triofind's presentation currency as of December 31, 2016 are closest to: a) NER1,375,000 b) NER1,380,252. C) NER1,434,783. Based on Exhibit 4, the country with the highest sustainable sales growth is: a) Norvolt. b) Abuelio. c) Borliand

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