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Please, use the accounts from the selection only. also, this is all the information there is. There is no more problem info that I could
Please, use the accounts from the selection only. also, this is all the information there is. There is no more problem info that I could provide. Thank you!
\begin{tabular}{|c|c|c|c|} \hline Income statement: & (In GBP) & Translation Rate & In US Dollars \\ \hline Sales & 2,400,000 & 0 & $ \\ \hline Cost of goods sold & (1,440,000) & 0 & 0 \\ \hline Gross Profit & 960,000 & & 0 \\ \hline Operating expenses & (624,000) & 0 & 0 \\ \hline Net income & 336,000 & & $ \\ \hline \multicolumn{4}{|l|}{ Statement of retained earnings: } \\ \hline BOY retained earnings & 1,260,000 & & $984,198 \\ \hline Net income & 336,000 & & 0 \\ \hline Dividends & (33,600) & 0 & 0 \\ \hline Earned retained earnings & 1,562,400 & & $ \\ \hline \multicolumn{4}{|l|}{ Balance Sheet: } \\ \hline \multicolumn{4}{|l|}{ Assets } \\ \hline Cash & 683,040 & 0 & 0 \\ \hline Accounts receivable & 556,800 & 0 & 0 \\ \hline Inventory & 715,200 & 0 & 0 \\ \hline PPE, net & 1,322,880 & 0 & 0 \\ \hline Total Assets & 3,277,920 & = & 0 \\ \hline \multicolumn{4}{|l|}{ Liabilities and Stockholders' Equity } \\ \hline Current Liabilities & 407,040 & 0 & 0 \\ \hline Long-term Liabilities & 948,480 & 0 & 0 \\ \hline Common Stock & 160,000 & 0 & 0 \\ \hline APIC & 200,000 & 0 & 0 \\ \hline Retained Earnings & 1,562,400 & & 0 \\ \hline \end{tabular} b. Compute the ending Cumulative Translation Adjustment directly b. Compute the ending Cumulative Translation Adjustment directly, assuming a BOY Translation of financial statements Assume that your company owns a subsidiary operating in Great Britain. The subsidiary maintains its books in the British pound (GBP) as its functional currency. The subsidiary's financial statements (in GBP) for the most recent year follow in part a, below: The relevant exchange rates for the \$US value of the British pound (GBP) are as follows: Instructions for both parts a. and b, below: - Use a negative sign with your answers to indicate a reduction (expenses, cash outflows, etc.). - Round answers to the nearest whole number. a. Translate the subsidiary's income statement, statement of retained earnings, balance sheet, and statement of cash flows into $ US (assume that the BOY Retained Earnings is $984,198 ). \begin{tabular}{|c|c|c|c|} \hline Income statement: & (In GBP) & Translation Rate & In US Dollars \\ \hline Sales & 2,400,000 & 0 & $ \\ \hline Cost of goods sold & (1,440,000) & 0 & 0 \\ \hline Gross Profit & 960,000 & & 0 \\ \hline Operating expenses & (624,000) & 0 & 0 \\ \hline Net income & 336,000 & & $ \\ \hline \multicolumn{4}{|l|}{ Statement of retained earnings: } \\ \hline BOY retained earnings & 1,260,000 & & $984,198 \\ \hline Net income & 336,000 & & 0 \\ \hline Dividends & (33,600) & 0 & 0 \\ \hline Earned retained earnings & 1,562,400 & & $ \\ \hline \multicolumn{4}{|l|}{ Balance Sheet: } \\ \hline \multicolumn{4}{|l|}{ Assets } \\ \hline Cash & 683,040 & 0 & 0 \\ \hline Accounts receivable & 556,800 & 0 & 0 \\ \hline Inventory & 715,200 & 0 & 0 \\ \hline PPE, net & 1,322,880 & 0 & 0 \\ \hline Total Assets & 3,277,920 & = & 0 \\ \hline \multicolumn{4}{|l|}{ Liabilities and Stockholders' Equity } \\ \hline Current Liabilities & 407,040 & 0 & 0 \\ \hline Long-term Liabilities & 948,480 & 0 & 0 \\ \hline Common Stock & 160,000 & 0 & 0 \\ \hline APIC & 200,000 & 0 & 0 \\ \hline Retained Earnings & 1,562,400 & & 0 \\ \hline \end{tabular} b. Compute the ending Cumulative Translation Adjustment directly b. Compute the ending Cumulative Translation Adjustment directly, assuming a BOY Translation of financial statements Assume that your company owns a subsidiary operating in Great Britain. The subsidiary maintains its books in the British pound (GBP) as its functional currency. The subsidiary's financial statements (in GBP) for the most recent year follow in part a, below: The relevant exchange rates for the \$US value of the British pound (GBP) are as follows: Instructions for both parts a. and b, below: - Use a negative sign with your answers to indicate a reduction (expenses, cash outflows, etc.). - Round answers to the nearest whole number. a. Translate the subsidiary's income statement, statement of retained earnings, balance sheet, and statement of cash flows into $ US (assume that the BOY Retained Earnings is $984,198 ) Step by Step Solution
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