The Luh Company's 2014 cash flow statement appears below, in its functional currency. New Taiwan dollars (NT$)
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Additional information:
1. Exchange rates: January 1, 2014: $0.042/NT$; December 31, 2014: $0.039/NT$; 2014 average: $0.04/NT$.
2. Changes in current operating assets and liabilities and dividend payments occurred at the average rate.
3. Common stock was issued and plant assets were acquired when the rate was $0.0423/NT$.
4. The long-term investments were sold and the long-term debt was retired when the rate was $0.0394/NT$.
Required
Convert the above statement of cash flows into dollars. Include a computation of the effect of exchange rate changes on cash.
The value of one currency for the purpose of conversion to another. Exchange Rate means on any day, for purposes of determining the Dollar Equivalent of any currency other than Dollars, the rate at which such currency may be exchanged into Dollars...
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Related Book For
Advanced Accounting
ISBN: 978-1934319307
2nd edition
Authors: Susan S. Hamlen, Ronald J. Huefner, James A. Largay III
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