A German subsidiary of a US company has generated the following results in the last 2 months:

In February,

• Sales were €1,000,000
• Net income was €50,000
• Month-end cash on the balance sheet was €100,000

In March,

• Sales increased 5% over February’s results
• Net income was €51,000
• Month-end cash on the balance sheet remained at €100,000

The USD/EUR was .85 in February, and then moved to .80 in March.

1. What would these results add to the US company’s consolidated results? For the income statement items, do not use an average rate.
2.  

2. Interpret the March vs. February results, in words and metrics.

Transcribed Image Text:

Sales Net Income Cash February March Sales Net Income Cash February March

Answer rating: 100% (QA)

The US companys consolidated results would include the following In Februar... View the full answer