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thanks so much for the help! Calculate the cumulative translation adjustment for this US MNC translating the balance sheet and income statement of a French
thanks so much for the help!
Calculate the cumulative translation adjustment for this US MNC translating the balance sheet and income statement of a French subsidiary, which keeps its books in euro, but that is translated into US dollars using the current rate method, the reporting currency of the US. MNC. The subsidiary is at the end of its first year of operation. The historical exchange rate is $160/6100 and the most recent exchange rate is $1.50/6. Local Currency Current Rate 2,100 1,500 3,000 6,600 1,200 1,800 2,700 900 $ 3,150 $ 2,250 $ 4,500 $ 9,900 $ 1,800 $ 2,700 $ 4,320 $ 1,394 Balance Sheet Cash Inventory (Current Value - 1,800) Net fixed assets Total Assets Current liabilities Long-term debt Common stock Retained earnings Total L&E Income Statement Sales Revenue COGS Depreciation NOI Tax(40%) Profit after tax Foreign Exchange gain (loss) Net income Dividends Addition to Retained Earnings 6,600 $ 9,900 10,000 7,500 1,000 1,500 600 900 $15,484 $11,613 $ 1,548 $ 2,323 $ 929 $ 1,394 900 900 $ 1,394 $ $ 1,394 Short Answer Toolbar navigation BI U S ==
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