This case is based on the consolidated financial statements of RadioShack Corporation given in Appendix B at the end of this book.
1. Read Note 4: Acquisitions. Does RadioShack Corporation own any foreign subsidiaries? How much of the subsidiary does it own? Explain the method of accounting the company uses to account for this subsidiary.
2. At December 31, 2010, did RadioShack Corporation have a cumulative net gain or a cumulative net loss from translating its foreign subsidiaries’ financial statements into dollars? How can you tell?
3. Read Note 12. What are the types of investments that RadioShack Corporation reports at fair values? What level of fair values does it use (1, 2, or 3)? Describe in general how this fair value adjustment works. What judgments must financial managers of the company make in order to make these adjustments?

  • CreatedApril 22, 2013
  • Files Included
Post your question