QUESTION 3 Not complete Marked out of 81.00 P Flag question Translation of finan

Question

QUESTION 3 Not complete Marked out of 81.00 P Flag question Translation of financial statements Assume that your company owns a subsidiary operating in Brazil. The subsidiary maintains its books in the Brazilian real (BRL) as its functional currency. The subsidiary's financial statements (in BRL) for the most recent year: (in BRL) (in BRL) (in BRL) Income Statement: Sales Cost of Goods Sold Gross profit Operating expenses Balance Sheet: Statement of Cash Flows: 3,750,000 Assets 525,000 067,250 Change in accounts receivable 145,000) (186,250) 106,000 299,750 Net Income (2,250,000) Cash 1,500,000 Accounts receivable 975,000) Inventory 525,000 870,000 Change in inventories in current liabilities Net income Property, plant, and Net cash from operating activities equipment (PPE), net 2,067,000 5,121,750 Total assets earning: Change in PPE, net (192,000) BOY ret. earnings Net income Dividends EOY ret. earnings 1,968,750 Liabilities and stockholders' equity Net cash from investing activities 192,000) 525,000 Curr. liabilities (52,500) L-T liabilities 2441,250 Common stock 636,000 247,000 (52,500) 12,500 Net cash from financing activities 194,500 1,482,000 Change in long-term debt 250,000 Dividends APIC Ret. earnings Total liabilities and equity 2,441,250 5,121,750 Net change in cash Beginning cash Ending cash 302,250 765,000 1,067,250

Explanation / Answer

For Incomes and expenditures Avg rate is used

For Assets closing EOY rate is used.

Hope this will be helpful.

Sales 37,50,000.00 0.25 9,37,500.00 Cost of goods sold -22,50,000.00 0.25 -5,62,500.00 Gross Profit 15,00,000.00 3,75,000.00 Operating Expenses -9,75,000.00 0.25 -2,43,750.00 Net Income 5,25,000.00 1,31,250.00 BOY Retained Earnings 19,68,750.00 15,37,810.00 Net Income 5,25,000.00 1,31,250.00 Dividends -52,500.00 0.27 -14,175.00 EOY Retained Earnings 24,41,250.00 16,54,885.00

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