Translate Slingshot Corp's 2019 financial statements into Canadian dollars, the Canadian dollar as the functional currency (Income Statement, Retained Earnings, Balance Sheet) Include in your calculations (1) the gain or loss on net monetary assets (liabilities), (2) cost of goods sold, (3) amortization expense. (FCT)

B) Assuming that Slingshot uses the Euro (not Canadian $) as the functional currency, Calculate the liabilities and shareholder's equity portion of the translated balance sheet as at December 31, 2019. Use the presentation currency translation method (PCT)

SHOW ALL CALCULATIONS, including Accumulated translation adjustments (OCI) at December 31, 2019.

 Additional Information:

Inventories on hand at December 31, 2019 and December 31, 2018 were purchased evenly over the final 6 months of 2019 and 2018 respectively.

. Slingshot Corp issued €500,000 of its bonds on January 1, 2017 and €300,000 on January 1, 2019. All bonds pay interest at 8% and mature on December 31, 2024. On July 2, 2019, Slingshot Corp repurchased €100,000 of the bonds at their face value.

. Slingshot Corp declared and paid dividends of €30,000 and €40,000 on March 31, 2018 and March 31, 2019, respectively.

. Slingshot Corp leased its delivery vans until J On that date, it acquired 10 delivery vans at a cost of €330,000. On , it acquired an additional 8 delivery vans at a cost of €240,000. All of Slingshot Corp's delivery vans have an estimated useful life of 6 years from the date of acquisition, with no expected salvage value. None of the delivery vans have been sold since January 1, 2018.

. The notes receivable was received from one of Slingshot Corp's clients on March 31, 2019. It pays interest at 10% and is due on December 31, 2022.

. All sales, purchases, and other expenses are incurred evenly throughout the year. 8. All amounts for Slingshot Corp are stated in Euro (€).

Transcribed Image Text:

Slingshot Corp is a foreign subsidiary of Porcelain Company, a Canadian company. Slingshot Corp was acquired December 31, 2018 and manufactures tableware for sale based on sales prices determined by world-wide competition. The chief financial officer of Slingshot Corp emailed the following December 31, 2019 financial statements, stated in Euro ()to you, the CFO of Porcelain Company SLINGSHOT CORP Balance Sheets (in Euro ()) Cash Accounts receivable Inventory Note receivable, due December 31, 2020 Delivery vans, net Accounts payable Bonds payable Common shares Retained earnings Sales and interest revenue Cost of goods sold Administration expenses Bond interest expense Amortization Income taxes Net income Retained earnings January 1 Dividends Retained earnings December 31 Additional Information Exchange rates: Jan 1, 2017 Jan 1, 2018 1. Mar 31, 2018 Average for July 1 - Dec 2018 Dec 31, 2018/Jan 1, 2019 March 31, 2019 Average for Jan 1 - Jun 30, 2019 Average for Jul 1 - Dec 31, 2019 Dec 31, 2019 210,000 Average for Apr 1 - Dec 31, 2019 Dec 31, 2019 Average for 2019 1,600,000 310,000 550,000 100,000 430,000 150,000 700,000 300,000 450,000 1,600,000 SLINGSHOT CORP Statement of Income and Retained Earnings years ended December 31, 2019, and 2018 (in Euro ()) 2019 1,700,000 1.200.000 105,000 60,000 85,000 80,000 Dec 31, 2018 190,000 170,000 320,000 (40,000) 450.000 1 EURO = C $1.35 1 EURO = C $1.30 1 EURO = C $1.28 1 EURO = C $1.26 1 EURO = C $1.29 1 EURO = C $1.33 1 EURO = C $1.35 1 EURO = C $1.40 1 EURO = C $1.34 1 EURO = C $1.41 1 EURO = C $1.35 1,300,000 2018 1,500,000 335,000 500,000 1,210,000 95,000 40,000 55,000 32,000 275,000 1,300,000 180,000 68,000 282,000 (30,000) 320,000 500,000 300,000 320,000 Slingshot Corp is a foreign subsidiary of Porcelain Company, a Canadian company. Slingshot Corp was acquired December 31, 2018 and manufactures tableware for sale based on sales prices determined by world-wide competition. The chief financial officer of Slingshot Corp emailed the following December 31, 2019 financial statements, stated in Euro ()to you, the CFO of Porcelain Company SLINGSHOT CORP Balance Sheets (in Euro ()) Cash Accounts receivable Inventory Note receivable, due December 31, 2020 Delivery vans, net Accounts payable Bonds payable Common shares Retained earnings Sales and interest revenue Cost of goods sold Administration expenses Bond interest expense Amortization Income taxes Net income Retained earnings January 1 Dividends Retained earnings December 31 Additional Information Exchange rates: Jan 1, 2017 Jan 1, 2018 1. Mar 31, 2018 Average for July 1 - Dec 2018 Dec 31, 2018/Jan 1, 2019 March 31, 2019 Average for Jan 1 - Jun 30, 2019 Average for Jul 1 - Dec 31, 2019 Dec 31, 2019 210,000 Average for Apr 1 - Dec 31, 2019 Dec 31, 2019 Average for 2019 1,600,000 310,000 550,000 100,000 430,000 150,000 700,000 300,000 450,000 1,600,000 SLINGSHOT CORP Statement of Income and Retained Earnings years ended December 31, 2019, and 2018 (in Euro ()) 2019 1,700,000 1.200.000 105,000 60,000 85,000 80,000 Dec 31, 2018 190,000 170,000 320,000 (40,000) 450.000 1 EURO = C $1.35 1 EURO = C $1.30 1 EURO = C $1.28 1 EURO = C $1.26 1 EURO = C $1.29 1 EURO = C $1.33 1 EURO = C $1.35 1 EURO = C $1.40 1 EURO = C $1.34 1 EURO = C $1.41 1 EURO = C $1.35 1,300,000 2018 1,500,000 335,000 500,000 1,210,000 95,000 40,000 55,000 32,000 275,000 1,300,000 180,000 68,000 282,000 (30,000) 320,000 500,000 300,000 320,000

Answer rating: 100% (QA)

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