Assume that the balance sheet and income statement of a French subsidiary,which keeps its books in euro,is translated into U.S.dollars,the reporting currency of the U.S.MNC. The table presents the balance sheet and income statement in euro.The subsidiary is at the end of its first year of operation.The historical exchange rate is $1.60/€1.00 and the most recent exchange rate is $2.00/€. Fill out the 20 missing entries that translate the balance sheet and income statement for this French subsidiary using the Current/Noncurrent Method,the Monetary/Nonmonetary Method,the Temporal Method,and the Current Rate Method.

Local Currency Current/Non current Monetary/Non monetary Temporal Current Rate

Balance Sheet

Cash € 2,100

Inventory (current Value = €1,800) € 1,500

Net fixed assets € 3,000 ______ ______ ______ ______

Total Assets € 6,600

Current liabilities € 1,200

Long-term debt € 1,800

Common stock € 2,700

Retained earnings € 900

CTA ______ ______ ______ ______ ______

Total L&E € 6,600

Income Statement

Sales Revenue € 10,000

COGS € 7,500

Depreciation € 1,000

NOI € 1,500 ______ ______ ______ ______

Tax(40%) € 600

Profit after tax € 900 ______ ______ ______ ______

Foreign Exchange gain (loss)

Net income € 900 ______ ______ ______ ______

Dividends € 0
Addition to Retained Earnings € 900

Question

Assume that the balance sheet and income statement of a French subsidiary,which keeps its books in euro,is translated into U.S.dollars,the reporting currency of the U.S.MNC. The table presents the balance sheet and income statement in euro.The subsidiary is at the end of its first year of operation.The historical exchange rate is $1.60/€1.00 and the most recent exchange rate is $2.00/€.
Fill out the 20 missing entries that translate the balance sheet and income statement for this French subsidiary using the Current/Noncurrent Method,the Monetary/Nonmonetary Method,the Temporal Method,and the Current Rate Method.

	Local Currency	Current/Non current	Monetary/Non monetary	Temporal	Current Rate
Balance Sheet
Cash	€ 2,100
Inventory (current Value = €1,800)	€ 1,500
Net fixed assets	€ 3,000	______	______	______	______
Total Assets	€ 6,600
Current liabilities	€ 1,200
Long-term debt	€ 1,800
Common stock	€ 2,700
Retained earnings	€ 900
CTA	______	______	______	______	______
Total L&E	€ 6,600
Income Statement
Sales Revenue	€ 10,000
COGS	€ 7,500
Depreciation	€ 1,000
NOI	€ 1,500	______	______	______	______
Tax(40%)	€ 600
Profit after tax	€ 900	______	______	______	______
Foreign Exchange gain (loss)
Net income	€ 900	______	______	______	______
Dividends	€ 0
Addition to Retained Earnings	€ 900

Quizplus · Accepted Answer

The Answer of Assume that the balance sheet and income statement of a French subsidiary,which keeps its books in euro,is translated into U.S.dollars,the reporting currency of the U.S.MNC. The table presents the balance sheet and income statement in euro.The subsidiary is at the end of its first year of operation.The historical exchange rate is $1.60/€1.00 and the most recent exchange rate is $2.00/€. Fill out the 20 missing entries that translate the balance sheet and income statement for this French subsidiary using the Current/Noncurrent Method,the Monetary/Nonmonetary Method,the Temporal Method,and the Current Rate Method.

	Local Currency	Current/Non current	Monetary/Non monetary	Temporal	Current Rate
Balance Sheet
Cash	€ 2,100
Inventory (current Value = €1,800)	€ 1,500
Net fixed assets	€ 3,000	______	______	______	______
Total Assets	€ 6,600
Current liabilities	€ 1,200
Long-term debt	€ 1,800
Common stock	€ 2,700
Retained earnings	€ 900
CTA	______	______	______	______	______
Total L&E	€ 6,600
Income Statement
Sales Revenue	€ 10,000
COGS	€ 7,500
Depreciation	€ 1,000
NOI	€ 1,500	______	______	______	______
Tax(40%)	€ 600
Profit after tax	€ 900	______	______	______	______
Foreign Exchange gain (loss)
Net income	€ 900	______	______	______	______
Dividends	€ 0
Addition to Retained Earnings	€ 900

Assume That the Balance Sheet and Income Statement of a French