Question
Translation of financial statements Assume that your company owns a subsidiary operating in Canada. The subsidiary maintains its books in the Canadian Dollar (CAD) as
Translation of financial statements
Assume that your company owns a subsidiary operating in Canada. The subsidiary maintains its books in the Canadian Dollar (CAD) as its functional currency. Following are the subsidiarys financial statements (in CAD) for the most recent year:
The relevant exchange rates ($:CAD) are as follows:
BOY rate | $0.70 |
EOY rate | $0.76 |
Avg. rate | $0.73 |
PPE purchase date rate | $0.74 |
LTD borrowing date rate | $0.74 |
Dividend rate | $0.75 |
Historical rate (common stock and APIC) | $0.60 |
For both parts a. and b. below, use a negative sign with answers to indicate a reduction.
a. Translate the subsidiarys income statement, statement of retained earnings, balance sheet, and statement of cash flows into $US (assume that the BOY Retained Earnings is $553,612).
Round all answers in the "in US Dollars" column to the nearest dollar.
Round all arswers to the nearest doliatStep by Step Solution
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