d) Currently, Furnicom have a wholly owned subsidiary in France. Use the following information to...
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d) Currently, Furnicom have a wholly owned subsidiary in France. Use the following information to translate financial statement of the French subsidiary using the Monetaryl Non-Monetary and the current rate method. methods. (4 points) Assumption: The subsidiary is at the end of its first year of operation The historical exchange rate is $1.60/ and the most recent exchange rate is $2.00/ Balance Sheet Local Currency Monetary Nonmonetary Current Rate Method Cash 4,200 3,000 Inventory (Current Value = 3,600) Net Fixed Assets 6,000 Total Assets , 13,200 Current Liabilities 2,400 Long-term Debt 3,600 Common Stock 5,400 Retained Earning 1,800 CTA Total L& E 13.200 Income Statement Sales Revenue 20,000 COGS 15,000 Depreciation 2,000 NOI 3,000 Tax (40%) 1,200 Profit after tax 1,800 Foreign Exchange gain (loss) Net Income Dividends 1,800 0 Addition to Retained Earning 1,800
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