Atreides International has operations in Arrakis. The balance sheet for this div

Question

Atreides International has operations in Arrakis. The balance sheet for this division in Arrakeen solaris shows assets of 15,500 solaris, debt in the amount of 6,000 solaris, and equity of 9,500 solaris. Requirement 1: If the current exchange ratio is 2.7 solaris per dollar, what does the balance sheet look like in dollars? (Click to select)Assets = $5,970.37; Debt = $2,311.11; Equity = $3,659.26Assets = $41,850; Debt = $16,200; Equity = $25,650Assets = $ 5,740.74; Debt = $2,222.22; Equity = $3,518.52Assets = $5,453.7; Debt = $2,111.11; Equity = $3,342.59Assets = $6,027.78; Debt = $2,333.33; Equity = $3,694.44 Requirement 2: Assume that one year from now the balance sheet in solaris is exactly the same as at the beginning of the year. If the exchange rate is 2.9 solaris per dollar, what does the balance sheet look like in dollars now? (Click to select)Assets = $5,077.59; Debt = $1,965.52; Equity = $3,112.07Assets = $5,344.83; Debt = $2,068.97; Equity = $3,275.86Assets = $5,558.62; Debt = $2,151.72; Equity = $3,406.9Assets = $44,950; Debt = $17,400; Equity = $27,550Assets = $5,612.07; Debt = $2,172.41; Equity = $3,439.66 Requirement 3: Assume that one year from now the balance sheet in solaris is exactly the same as at the beginning of the year. If the exchange rate is 2.65 solaris per dollar, what does the balance sheet look like in dollars now? (Click to select)Assets = $5,849.06; Debt = $2,264.15; Equity = $3,584.91Assets = $6,141.51; Debt = $2,377.36; Equity = $3,764.15Assets = $27,508.33; Debt = $15,900; Equity = $25,175Assets = $5,556.6; Debt = $2,150.94; Equity = $3,405.66Assets = $6,083.02; Debt = $2,354.72; Equity = $3,728.3

Explanation / Answer

Requirement 1:

At an exchange rate of 2.7 solaris per dollar, the value of assets, liabilities and equity in dollarswill be as follows:

Assets = 15,500/2.7 = $5,740.74

Debt = 6,000/2.7 = $2,222.22

Equity = 9,500/2.7 = $3,518.52

_________

Requirement 2:

At an exchange rate of 2.9 solaris per dollar, the value of assets, liabilities and equity in dollars will be as follows:

Assets = 15,500/2.9 = $5,344.83

Debt = 6,000/2.9 = $2,068.97

Equity = 9,500/2.9 = $3,275.86

_________

Requirement 3:

At an exchange rate of 2.65 solaris per dollar, the value of assets, liabilities and equity in dollars will be as follows:

Assets = 15,500/2.65 = $5,849.06

Debt = 6,000/2.65 = $2,264.15

Equity = 9,500/2.65 = $3,584.90

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