Gard Tennis Supply, a U.S. multinational, has a subsidiary in France with the following balance sheet (denominated in euros).
The spot exchange rate is $0.97380/euro. The company's CFO has estimated the following average exchange rates for inventories, fixed assets, common stock, and retained earnings: $0.96152, $0.9558, $1.1041, and $1.0853, respectively. The subsidiary is classified as a self-sustaining foreign entity. Translate the balance sheet into U.S. dollars, which is the reporting currency. (Hint: Depending upon the translation method used, all of the exchange rates may not be used.)

Question

Gard Tennis Supply, a U.S. multinational, has a subsidiary in France with the following balance sheet (denominated in euros).
  The spot exchange rate is $0.97380/euro. The company's CFO has estimated the following average exchange rates for inventories, fixed assets, common stock, and retained earnings: $0.96152, $0.9558, $1.1041, and $1.0853, respectively. The subsidiary is classified as a self-sustaining foreign entity. Translate the balance sheet into U.S. dollars, which is the reporting currency. (Hint: Depending upon the translation method used, all of the exchange rates may not be used.)

Quizplus · Accepted Answer

The Answer of Gard Tennis Supply, a U.S. multinational, has a subsidiary in France with the following balance sheet (denominated in euros).
  The spot exchange rate is $0.97380/euro. The company's CFO has estimated the following average exchange rates for inventories, fixed assets, common stock, and retained earnings: $0.96152, $0.9558, $1.1041, and $1.0853, respectively. The subsidiary is classified as a self-sustaining foreign entity. Translate the balance sheet into U.S. dollars, which is the reporting currency. (Hint: Depending upon the translation method used, all of the exchange rates may not be used.)