Galaxy's Swiss subsidiary has the following balance sheet: Cash, mark securities SF 250,000 Accounts receivable Inventory...

 

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Galaxy's Swiss subsidiary has the following balance sheet: Cash, mark securities SF 250,000 Accounts receivable Inventory (at market. Fixed Assets Total assets 1,000,000 2,700,000 5,100,000- SF O a loss of $284,200 O a gain of $284,200 a gain of $289.100 a loss of $289.100 ------- 9,050,000 Current liabilities Long-term debt Equity Total liab plus equity Suppose the value of the SF changes from $0.700 to $0.758 during the period. Under the current rate method, what is Galaxy's translation gain (loss).? SF 750,000 3,400,000 4,900,000 --SF ******* 9,050,000 ******** Galaxy's Swiss subsidiary has the following balance sheet: Cash, mark securities SF 250,000 Accounts receivable Inventory (at market. Fixed Assets Total assets 1,000,000 2,700,000 5,100,000- SF O a loss of $284,200 O a gain of $284,200 a gain of $289.100 a loss of $289.100 ------- 9,050,000 Current liabilities Long-term debt Equity Total liab plus equity Suppose the value of the SF changes from $0.700 to $0.758 during the period. Under the current rate method, what is Galaxy's translation gain (loss).? SF 750,000 3,400,000 4,900,000 --SF ******* 9,050,000 ********

Answer rating: 100% (QA)

The image shows a problem relating to the translation of a foreign subsidiarys financial statements into the parent companys reporting currency Galaxy... View the full answer