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plz take ur time, use similar format table. thanks! Superbuy, located in Germany, is a subsidiary of Plentistores, a U.S. retail company. Superbuy reports the
plz take ur time, use similar format table. thanks!
Superbuy, located in Germany, is a subsidiary of Plentistores, a U.S. retail company. Superbuy reports the following financial results for 2020: Sales Cost of sales 100,000,000 75,000,000 20,000,000 1,000,000 Operating expenses Dividends Additional information for 2020: Beginning retained earnings, remeasured $15,000,000 Beginning retained earnings, translated $20,000,000 Beginning net monetary liabilities (50,000,000) Beginning net assets 85,000,000 Beginning inventory balance 2,000,000 Ending inventory balance 3,500,000 Operating expenses include 8,000,000 in depreciation and amortization on assets acquired when the exchange rate was $1.40/. Dividends were declared when the exchange rate was $1.18/. Sales and inventory purchases were made evenly throughout the year. The beginning inventory was purchased when the exchange rate was $1.25/, and the ending inventory was purchased when the exchange rate was $1.177. Exchange rates ($/): . Beginning of 2020 $1.25 Average for 2020 1.20 End of 2020 1.17 Required 1 a. Assume the functional currency of Superbuy is the euro. Calculate the subsidiary's translated ending retained earnings, in U.S. dollars. Do not use negative signs with any of your answers below. $ Beginning translated retained earnings $ 2,000,000 Net income 0 Dividends 0 Ending translated retained earnings $ 29,000,000 b. Assume the functional currency of Superbuy is the U.S. dollar. Calculate the subsidiary's remeasured ending retained earnings, in U.S. dollars. Instructions for the Remeasured gain or loss: 1. Use negative signs with answers to indicate a negative exposed position. 2. Use negative signs with answers that reduce the exposed position balance. 3. Using the drop-down menu at the bottom of the table and select the appropriate answer. However, do not use a negative sign with numerical answer for measured gain or loss. Remeasured gain or loss: $/ Beginning exposure 0 0 $ Sales Purchases Out-of-pocket expenes Dividends 0 0 0 0 0 0 0 0 O O O O O O OO Ending exposure 0 0 $ However, do not use a negative sign with numerical answer for measured gain or loss. Remeasured cost of sales: $/ Beginning inventory 0 0 $ 0 Purchases 0 0 0 Ending inventory 0 0 0 Remeasured cost of sales $ 0 Do not use negative signs with any of your answers below. Remeasured operating expenses: $/ $ Out-of-pocket expenses (computed above) $ Depreciation/amortization 0 0 Remeasured operating expenses $ 0 0 $ 0 Do not use negative signs with any of your answers below. Remeasured net income: Sales $ 0 Cost of sales 0 Operating expenses 0 Remeasurement gain or loss 0 Remeasured net income $ 0 $ Do not use negative signs with any of your answers below. Ending remeasured retained earnings $ Beginning remeasured retained earnings $ 0 Net income 0 Dividends 0 Ending remeasured retained earnings $ 0Step by Step Solution
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