Salalah Corporation, the Omani affiliate of a U.S manufacturer, has the balance sheet shown below. The current
Fantastic news! We've Found the answer you've been seeking!
Question:
Salalah Corporation, the Omani affiliate of a U.S manufacturer, has the balance sheet shown below. The current exchange rate is $ 3.25= OMR 1.
Assets OMR Liabilities OMR
Cash Accounts Receivables
Inventories Fixed assets net
Total 35,000
80,000
120,000
205,000
440,000 Accounts payable
Long-term debt
Stockholders’ equity
Total 115,000
145,000
180,000
440,000
Required:
A. If the OMR appreciate by 30 percent, what would be the translation effects under current- noncurrent method?
B. If the OMR depreciated by 25 percent, what would be the translation effects under the monetary- nonmonetary method?
Related Book For
Economics
ISBN: 978-0073375694
18th edition
Authors: Campbell R. McConnell, Stanley L. Brue, Sean M. Flynn
Posted Date: