Week8 HW - Exercise 13-4 Part A Consolidated Income and...

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Exercise 13-4 Swiss Translation Francs Rate $ Part A Consolidated Income and Retained Earnings Statement Revenues 75,000 $.5654 42,405 Operating Expenses (30,000 ) .5654 (16,962 ) Net Income 45,000 25,443 Retained Earnings - 1/1 10,000 .5987 5,987 55,000 31,430 Dividends (15,000 ) .5810 (8,715 ) Retained Earnings - 12/31 40,000 22,715 Balance Sheet Cash and Receivables 55,000 .5321 29,266 Net Property, Plant, and Equipment 37,000 .5321 19,688 Total 92,000 48,954 Accounts and Notes Payable 32,000 .5321 17,027 Common Stock 20,000 .5987 11,974 Retained Earnings 40,000 22,715 92,000 51,716 Cumulative Translation Adjustment (debit) --- Balancing amt. (2,762 ) Total 92,000 48,954 Swiss Translation Francs Rate $ Part B Exposed net asset position - 1/1 30,000 $.5987 17,961 Adjustment for changes in the net asset position during the year:
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Net income 45,000 .5654 25,443 Dividends (15,000 ) .5810 (8,715 ) Net asset position translated using rate in effect at date of transactions --- 34,689 Exposed net asset position - 12/31 60,000 .5321 31,927 Cumulative translation adjustment (debit) (2,762 ) Exercise 13-6 Part A Part B Swiss Translation Brazilian Translation Franc Rate Real Rate $ Consolidated Income and Retained Earnings Statement Revenues 75,000 1.3445 100,838 $.4751 47,908 Operating Expenses Depreciation (3,000) 1.3940 (4,182) .4751 (1,987) Other (27,000) 1.3445 (36,302) .4751 (17,247) Translation Loss --- Balancing amount (2,271 ) .4751 (1,079 ) Net Income 45,000 58,083 27,595 Retained Earnings - 1/1 10,000 1.3940 13,940 .4891 6,818 55,000 72,023 34,413 Dividends (15,000 ) 1.2438 (18,657 ) .4740 (8,843 ) Retained Earnings - 12/31 40,000 53,366 25,570 Balance Sheet Cash and Receivables 55,000 1.2899 70,945 .4630 32,847 Net Property, Plant, and Equipment 37,000 1.3940 51,578 .4630 23,880 Total 92,000
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This note was uploaded on 07/31/2011 for the course ACCT 401 taught by Professor Bennett during the Spring '08 term at Strayer.

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Week8 HW - Exercise 13-4 Part A Consolidated Income and...

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