1Cash Inventory (current Value = ²FAAD1,800) 3Net fixed assets 2 4Total Assets 5Current liabilities 6Long-term debt 7Common stock 8Retained earnings 9Total L&E FFAD 2,100 FAAD 1,500 FAAD 3,000 FAAD 6,600 FAAD 1,200 FAAD 1,800 FAAD 2,700 FAAD 900 FAAD 6,600
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- Certain balance sheet accounts of a foreign subsidiary of Orchid Company have been stated in U.S. dollars as follows: Current Rates Historical Rates Accounts Receivable, current $200000 $220000 Accounts Receivable, long term 100000 110000 Land 50000 55000 Patents 80000 85000 Total $430000 $470000 This subsidiary’s functional currency is a foreign currency. What total should Orchid’s balance sheet include for the preceding items? Choose the correct.a. $430,000.b. $435,000.c. $440,000.d. $450,000Certain balance sheet accounts of a foreign subsidiary of Paul Inc. at December 31, year 1, have been translated in US dollars as follows: Translated at Current Rates Historical Rates Note recievable, long term P 240,000 P 200,000 Prepaid rent 85,000 80,000 Patent 150,000 170,000 P 475,000 P 450,000 The subsidiary's functional currency is…! Required information Newberry, Inc., whose reporting currency is the U.S. dollar ($), has a subsidiary in Argentina, whose functional currency also is the $. The subsidiary acquires inventory on credit on November 1, 2017, for 210,000 pesos that is sold on January 17, 2018, for 243,000 pesos. The subsidiary pays for the inventory on January 31, 2018. Currency exchange rates are as follows: $0.54 =1 peso November 1, 2017 December 31, 2017 0.55 =1 January 17, 2018 January 31, 2018 0.56 =1 0.57 =1
- Translate into dollars the balance sheet of Nevada Leather Goods' Spanish subsidiary. When Nevada Leather Goods acquired the foreign subsidiary, a euro was worth $1.07. The current exchange rate is $1.36. During the period when retained earnings were earned, the average exchange rate was $1.18 per euro. E (Click the icon to view the financial data.) Requirement During the period covered by this situation, which currency was stronger, the dollar or the euro? 870,000 Assets Liabilities 560,000 Shareholders' equity Share capital 75,000 Retained earnings 235,000 Foreign-currency translation adjustment 870,000 During this period, the was stronger than the V The V produced the V translation adjustment. Choose from any list or enter any number in the input fields and then continue to the next question.Problems 6 and 7 are based on the following information.Certain balance sheet accounts of a foreign subsidiary of Orchid Company have been stated in U.S. dollars as follows:This subsidiary’s functional currency is a foreign currency. What total should Orchid’s balance sheet include for the preceding items?a. $430,000.b. $435,000.c. $440,000.d. $450,000.ASSUME THAT THE LOCAL CURRENCY UNIT IS THE FUNCTIONAL CURRENCY. Cade Inc. had a debit adjustment of $6400 for the year ended December 31, 2019, from restating its foreign subsidiary's accounts from their local currency units into U.S. dollars. Additionally, Cade had a receivable from a foreign customer. It is denominated in the customer's local currency. On December 31, 2018, this receivable for 300,000 local currency units (LCU) was correctly included in Cade's balance sheet at $121000. When the receivable was collected on February 15, 2019, the U.S. dollar-equivalent was $123800. In Cade's 2019 consolidated statement of income, how much should be reported as foreign exchange gain/(loss) in computing net income? BE SURE TO TYPE A SIMPLE NUMBER WITH NO COMMAS OR DOLLAR SIGNS. FOR EXAMPLE, TYPE 1000 INSTEAD OF $1,000. IF THE NUMBER IS NEGATIVE, TYPE -1000 INSTEAD OF ($1,000) Your Answer:
- Certain balance sheet accounts of a foreign subsidiary of Orchid Company have been stated in U.S. dollars as follows: Current Rates Historical Rates Accounts Receivable, current $200000 $220000 Accounts Receivable, long term 100000 110000 Land 50000 55000 Patents 80000 85000 Total $430000 $470000 This subsidiary’s functional currency is the U.S. dollar. What total should Orchid’s balance sheet include for the preceding items?a. $430,000.b. $435,000.c. $440,000.d. $450,000.Problems 6 and 7 are based on the following information.Certain balance sheet accounts of a foreign subsidiary of Orchid Company have been stated in U.S. dollars as follows:This subsidiary’s functional currency is the U.S. dollar. What total should Orchid’s balance sheet include for the preceding items?a. $430,000.b. $435,000.c. $440,000.d. $450,000.The trial balance of Honesty Company at December 31, 2022, a foreign subsidiary of ABC Company, is presented below (denominated in US dollars) (see image below).T he translated amount of Retained Earnings is P325,000. Exchange rates were: Current Rate - P10; Historical Rate - P11; and Weighted Average Rate - P12. Answer the following subquestion(s): a. How much is the Cumulative Translation Adjustment at December 31, 2022? ______________ thanks!
- Certain balance sheet accounts of a foreign subsidiary of Orchid Company have been stated in U.S. dollars as follows: Current Rates Historical Rates Accounts receivable, current $ 235,000 $255,000 Accounts receivable, long term 142,000 149,000 land 71,000 74,000 Patents 101,000 106,000 $ 549,000 $ 584,000 1. This subsidiary’s functional currency is a foreign currency. What total should Orchid’s balance sheet include for the preceding items?$557,000.$554,000.$564,000.$549,000. 2. This subsidiary’s functional currency is the U.S. dollar. What total should Orchid’s balance sheet include for the preceding items?$554,000.$557,000.$564,000.$549,000Suppose that Canton Co. is a U.S.-based MNC with a foreign subsidiary in Germany, which deals in euros. The local earnings of this German subsidia over a two-year period are shown in the following table, along with the weighted average exchange rate of the euro and the translated U.S. dollar earnings of the subsidiary. Period Year 1 Year 2 Local Earnings of German Subsidiary (Euros, Millions) 20 20 Translated U.S. Dollar Earnings of Weighted Average Exchange German Subsidiary Rate of Euro $1.20 $1.00 (Dollars, Millions) $24.00 $20.00 Suppose that Canton has no earnings from the U.S. and all of it's earnings come from the consolidated earnings from the German subsidiary. Also suppose that the price of Canton stock is approximately equal to the mean P/E ratio in the industry multiplied by Canton's EPS. With these assumptions, the Consolidated Earnings (Euros, Millions) Period EPS (based on 10 million shares) Mean P/E Ratio (Dollars, Valuation of Canton Stock Millions) Price Year 1 Year 2…Case 2. Honda Phil. is a subsidiary of Honda Japan. The functional currency of Honda Phil. is peso while the presentation currency of its parent, Honda Japan is yen. For the year ended December 31, 2020, Honda Phil. has the following foreign currency denominated assets: Accounts Receivable of $1,000 and Prepaid Asset of $100. The historical rates of Accounts receivable and Prepaid asset are $1=P30 and $1=P20 and P1=2Yen and P1=4Yen, respectively. The exchange rate on December 31, 2020 is 1$=40 and P1=3Yen. 2. In the separate statement of financial position of Honda Phil. on December 31, 2020, what is the book value of accounts receivable and prepaid asset, respectively? 3. what is the book value of accounts receivable and prepaid asset, respectively, in the Consolidated Statement of Financial Position of Honda Japan?