Moulde 8 WORK - P18-2 Translation of financial statements A...

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P18-2 Translation of financial statements On 12/31/09, the exchange rate is US$1.20/;. Assume that the local (euro) figures for the statements r Calculate the U.S. dollar translated figures for the two ending time periods, assuming that between 12 *please click "F2" for calculations Translation of Income Statement 12/31/2009 12/31/2010 Euro US$ US$ Sales 30,000.00 $36,000.00 $33,960.00 Cost of goods sold 29,750.00 $35,700.00 $33,677.00 Operating profits 250 $300.00 $283.00 Translation of Balance Sheet Assets 12/31/2009 12/31/2010 Euro US$ US$ Cash 40 $48.00 $45.28 Inventory 300 $360.00 $339.60 160 $192.00 $181.12 Total 500 $600.00 $566.00 A U.S.-based MNC has a subsidiary in France (local currency, euro, ;). The balance sheet and incom Plant and equipment (net)
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remain the same on 12/31/10. 2/31/09 and 12/31/10 the euro has appreciated against the U.S. dollar by 6%. Liabilities and Stockholders’ Equi Debt 240 Paid-in capital 200 Retained earnings 60 Total 500 Break down Summary Calculation of exchange rate for year end
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Moulde 8 WORK - P18-2 Translation of financial statements A...

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