Scribd
Upload
5 views4 pages

Financial Overview: Currency Exchange & Assets

1. The document provides balance sheet and income statement information for a company in euros using a current rate method of foreign currency exchange. 2. It includes assets, liabilities, equity, revenues, expenses, and net income figures converted to US dollars using the given exchange rates for each period. 3. Retained earnings is calculated at the beginning and end of the period based on net income, dividends, and the prior period ending balance, demonstrating the accounting equation holding true when converted to US dollars at the different rates.

Uploaded by

linda daibes
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
5 views4 pages

Financial Overview: Currency Exchange & Assets

1. The document provides balance sheet and income statement information for a company in euros using a current rate method of foreign currency exchange. 2. It includes assets, liabilities, equity, revenues, expenses, and net income figures converted to US dollars using the given exchange rates for each period. 3. Retained earnings is calculated at the beginning and end of the period based on net income, dividends, and the prior period ending balance, demonstrating the accounting equation holding true when converted to US dollars at the different rates.

Uploaded by

linda daibes
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd

current rate method

foreign currency exchange rate


balance sheet
assets
cash € 1,150.00 1.9
A/R € 3,100.00 1.9
inventory (fifo) € 3,430.00 1.9
fixed assets € 4,900.00 1.9
acc. Depreciation -€ 720.00 1.9
intangable assets (patent) € 70.00 1.9
total € 11,930.00

liabilities and stockholders equity


A/P € 1,385.00 1.9
due to patent € 1,310.00 1.9
long-term debt € 4,000.00 1.9
deffered taxes € 120.00 1.9
common stocks € 1,500.00 1.7
retained earnings € 3,615.00 _
total € 11,930.00

income statement
sales € 16,700.00 1.86
expenses
cost of sales € 11,300.00 1.86
general and adminstration € 1,600.00 1.86
deperciation € 300.00 1.86
interest € 480.00 1.86
total expenses € 13,680.00 1.86
operating income € 3,020.00 1.86
transaaction gain (loss) € 125.00 1.86
income before taxes € 3,145.00 1.86
income texes current € 670.00 1.86
defferd € 40.00 1.86
net income € 2,435.00
retaines earnings at31/12/2010 residual € 1,480.00
dividends € 300.00 1.86
retaines earnings at31/12/2011 € 3,615.00

1 A/P +due to patent +long term debt +deffered taxer +common sto
2631.5+2489+7600+228+2850+R.E=22
R.E=7168.5

2 net income +beg R.E - dividends =end R.E


4529.1+beg R.E. -558 =7168.5
beg R.E. = 3197.4

3 12/31/2010
na =10970-(1610+1800+4500+80)
na =2980

beg fc exchane rate


net assets = € 2,980.00 1.8
net income € 2,435.00 1.8
dividends -€ 300.00 1.86

end net assets = € 5,115.00 1.9


current year translation adjustment losses
dollar equivalent

$ 2,185.00
$ 5,890.00
$ 6,517.00
$ 9,310.00
$ -1,368.00
$ 133.00
$ 22,667.00

$ 2,631.50
$ 2,489.00
$ 7,600.00
$ 228.00
$ 2,550.00
$ 7,168.50
$ 22,667.00

$ 31,062.00

$ 21,018.00
$ 2,976.00
$ 558.00
$ 892.80
$ 25,444.80
$ 5,617.20
$ 232.50
$ 5,849.70
$ 1,246.20
$ 74.40
$ 4,529.10
$ 3,197.40
$ 558.00
$ 7,168.50

ebt +deffered taxer +common stocks +retained earnings = total


5+2489+7600+228+2850+R.E=22667
R.E=7168.5

g R.E - dividends =end R.E


. -558 =7168.5
= 3197.4

12/31/2011
na =11930-(1385+1310+4000+120)
na =5115

dollar
$ 5,364.00
$ 4,383.00
$ -558.00
$ 9,189.00

$ 9,718.50
$ -529.50

You might also like