Chapter 10-8 - x $1.9 A = 19,000 Cash flow from operations...

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CHAPTER 10 TRANSLATION OF FOREIGN CURRENCY FINANCIAL STATEMENTS Answers to Problems 26. (30 minutes) (Prepare a statement of cash flows for a foreign subsidiary and then translate it into U.S. dollars) Fenwicke Company Subsidiary Statement of Cash Flows LCU U.S. Dollars Operating Activities: Net income 32,000 (from prob 25) $ 61,000 plus: depreciation 14,000 x $1.9 A = 26,600 less: increase in accounts receivable (10,000) x $1.9 A = (19,000) plus: increase in interest payable 10,000
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Unformatted text preview: x $1.9 A = 19,000 Cash flow from operations 46,000 87,600 Investing Activities: Purchase of building (140,000 ) x $2.0 H = (280,000 ) Financing Activities: Sale of common stock 40,000 x $2.0 H = 80,000 Borrowing on note 100,000 x $2.0 H = 200,000 Dividends paid (5,000 ) x $1.8 H = (9,000 ) 135,000 271,000 Increase in cash 41,000 78,600 Effect of exchange rate change on cash (4,800) Cash, 1/1-0--0-Cash, 12/31 41,000 x $1.80 C = $ 73,800...
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