Part 1”: This is a currency related exercise. Information you need is provided below. • Tab 3 “Part 2”: This is a consolidation exercise. Additional information you need is provided below. Note that...

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Answered Same DayDec 08, 2021

Answer To: Part 1”: This is a currency related exercise. Information you need is provided below. • Tab 3 “Part...

Preeta answered on Dec 09 2021
170 Votes
Part 1
    Euro Subsidiary
    Functional Currency is the Euro                        IMPORTANT NOTE: Part 1 and 2 on different tabs are independent of each other. Be sure to
read instructions, provided in a separate document, carefully
    Data presented is as of 12/31/20 and for the year then ended.
    Amounts are in Euros
    Statement of Financial Position
        Balance, 12/31/2020    Applicable exchange rate    Balance (in US Dollar)                        Exchange rates
    Cash    27000000    1.20    22,500,000                        Jan-15 1.20 Jan-16 1.08 Jan-17 1.05 Jan-18 1.21 Jan-19 1.15 Jan-20 1.12 Jun-20 1.14 Dec-20 1.22
    Accounts receivable    82,000,000    1.20    68,333,333
    Inventory    118,000,000    1.20    98,333,333
    Other current assets    22,000,000    1.20    18,333,333
        249,000,000        207,500,000
    Land    28,000,000    1.20    23,333,333
    Building    190,000,000    1.20    158,333,333
    Machinery    375,000,000    1.20    312,500,000
    Accumulated depreciation    (165,000,000)    1.20    (137,500,000)
        428,000,000        356,666,667
    Patents, net of amortization    85,000,000    1.20    70,833,333
    Total Assets    762000000        635,000,000
    Accounts payable    15000000    1.20    12,500,000
    Accrued expenses    42,000,000    1.20    35,000,000
    Income taxes payable    55,000,000    1.20    45,833,333
        112,000,000        93,333,333
    Long-term debt    180,000,000    1.20    150,000,000
    Common stock    15,000,000    1.20    12,500,000
    Additional paid-in capital    170,000,000    1.20    141,666,667
    Accumulated Currency Adjust.    (79,000,000)    1.20    (65,833,333)
    Retained earnings    364,000,000    1.20    303,333,333
        470,000,000        391,666,667
    Total Liabilities and Equity    762000000        635,000,000
    Amounts are in...
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