Week 9_Lecture Example

Week 9_Lecture Example - On 1.1.X1 Swan Ltd incorporates a...

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On 1.1.X1 Swan Ltd incorporates a subsidiary in the United States with capital of $US 50 million. The financial statements of the US subsidiary for 31.12.X1 are shown below. Other information: Land was acquired on 1.1.X1 The finance lease was entered into on 1.1.X1 Closing inventory acquired throughout year Interest, taxes and lease payments at the end of the year Exchange rates: 1.1.X1 $US1 = $A1 31.12.X1 $US1 = $A2 Average $US1 = $A1.5 Income Statement US$000 Rate $A000 Rate $A000 Sales revenue 20000 1.5 30000 1.5 30000 Cost of sales -9000 1.5 -13500 1.5 -13500 Employee exp -1000 1.5 -1500 1.5 -1500 Admin exp -1500 1.5 -2250 1.5 -2250 Depreciation -3000 1 -3000 1.5 -4500 Interest exp -2500 1.5 -3750 1.5 -3750 **Forex loss** -5450 Profit before tax 3000 550 4500 Income tax exp -900 1.5 -1350 1.5 -1350 Profit after tax 2100 -800 3150 $A Function $US Function
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Balance Sheet US$000 Rate $A000 Rate $A000 Cash 34100 2 68200 2 68200 Trade debtors 4000 2 8000 2 8000 Inventory 6000 1.5 9000 2 12000 Lease asset 30000
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This note was uploaded on 05/02/2010 for the course ACCT 3756 taught by Professor Leung during the Three '09 term at University of Sydney.

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Week 9_Lecture Example - On 1.1.X1 Swan Ltd incorporates a...

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