.. SUSIPOONS Uw Murpry Translation of financial statements (2 years) Assume that your company owns a subsidiary operating in Germary. The subsidiary conducts most of its business activities in the European Economic Union and intan books in the Euro as its functional currency. Following are the subsidiarys financial statements in for the prior and most recent years The relevant exchange rates for the SUS value of the Euro are as follows: Prior Year Current year DO $1.29 5131 51.21 $1.15 Avec 5125 518 the date . LTD borondate $1.17 Didende $1.22 $1.00 storicire common stock and ARKI 51.41 1941 Support a. Translate the subsidiary's income statement statement of retained earnings and balance sheet into US for both years assume that the Botined Earrings for the prior year is $1.560 000 Instructions: . Round translated answers to the nearest whole number Use negative signs with answers that are reductions (COGS. expenses dividends, cash outflows fosses, Prior Year an 0 Translation in Rate C6500,000 DS 3.900.000 2,600.000 0 1,600,000 E910.000 1 income Statement Sale Castossa Gross Profit Operatinentes income Statement of retained earnings Bonde Inc 0 0 0 0 $10.000 30 325.000 91000 Prior Year Rate Ins) 0 0 0 51.560.000 0 D 0 Translation income Statement (in) Sales 6,500,000 $ 0$ Cost of goods sold 3,900.000 $ 0 Gross Profit 2.600.000 Operating expenses 1,690,000) 0 Net income 910,000 s Statement of retained earnings: BOY retained earnings 3,276,000 Net income 910,000 Dividends 191.000) $ 0 Ending retained earnings 4,095,000 5 Balance sheet Assets Cash 827.8005 OS Accounts receivable 1.508,000 $ 0 Inventory 1,937,000 $ 0 PPE.net 4663,300 $ 0 Total assets 8.936,100 5 Liabilities and stockholders equity Current liabilities 1102,300 5 OS Long Term liabilities 2.568,800 5 0 Common Stock 520,000 $ D APIC 650,000 $ 0 Retained earnings 4,095.000 Cumulative translation adjustment Total liabilities & equity 8936,100 5 loloooo OOOOOOO Current Year Translation o MY SOULUPOUIS UMMU Current Year Translation no Rate 67100 00015 0 1 14.680.000 n 3,120.000 2.028.000 1,093.000 $ 9 0 0 (6.095.000 1.000.000 (09.2001 E 5.072,800 0 0 0 0 1 D Income statement Soes Cost of goods sold Gross proft Operating expenses Net income Statement of retained earning BOY ahedaming Net income Druidends Indiane Balance sheet Assets C Accounts receive inventory PL To abilities and stod holders equity Current Long term bites Contoh 2219,8001 5.803,600 $ 2324,400 4.299,300 5 E 10653.100 0 0 oloso O 3 05 0 0 132.300 300 500 5 520.000 650.000 5 5,077100 0 0 0 APIC 0 0 0 10.653.100 0 Retained and Cumulative transton adjustment Total 8 euty Statement of cash flows: Net income Chanten accounts receivable Gm 61,092.000 1301,000 $ LED 0 Q esc Return to course # My Subscriptions Gavin Murp 1 0 0 0 BusinessCourse Statement of cash flows: Sente Change in accounts receivable Change in inventores Change incurrenties Net cashews from operating activities Chance PPE ne Netch flows from investing activities Change in long-term debe Dividends Net cash flows from financing activities Net change in cash Effect of exchange rate on cash Benincash Ending cash
