Question Help Translate into dollars the balance sheet of Ohio Leather Goods\' G

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Question Help Translate into dollars the balance sheet of Ohio Leather Goods' German subsidiary. When Ohio Leather Goods acquired the foreign subsidiary, a euro was worth $1.07. The current exchange rate is $1.300. During the period when retained earnings were earned, the average exchange rate was $1.17 per euro EEB (Click the icon to view the financial data.) Requirement 1. During the period covered by this scenario, which currency was stronger, the dollar or the euro? Begin by translating the balance sheet of Ohio Leather Goods' German subsidiary into U.S. dollars German Subsidiary: Exchange Euros Rate Dollars 700,000 Assets Liabilities 250,000 Stockholders' equity: Common stock 50,000 Retained earnings 400,000 Foreign-currency translation adjustment 700,000 During this period, the V was stronger than the The V produced the translation adiustment. Choose from any list or enter any number in the input fields and then continue to the next question.

Explanation / Answer

Euro is stronger as more dollar is required to be purchased one euro.

Euros Exchange Rate Dollars Assets 700,000 1.07 749,000 Liabilities 250,000 1.30 325,000 Stockholder's Equity: Common Stock 50,000 1.07 53,500 Retained earnings 400,000 1.17 468,000 Foreign-currency translation adjustment (97,500) 700,000 749,000

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