1

Problem 8

Listed below is financial date from DDD Inc., which is a foreign subsidiary of CCC Inc. DDD Inc. is located in Thailand. DDD Inc's financial statements must be translated into U.S dollars.

Spot rate information is presented below:

Beginning Retained Earnings was 0 Thai Bhat

The current spot rate (12/31/17) is $1= 32 Thai Bhat

The historical spot rate (1/1/17) is $1= 37 Thai Bhat

The weighted average spot rate is $1 = 34.87 Thai Bhat

Directions:

Prepare a translated income statement and balance sheet as of December 31, 2017.

DDD Inc.

Income Statement

For the year 2017

***** In Thai Bhat (B)

Revenue	B 15,400,000
COGS	3,600,000
Gross Profit	11,800,000
OtherExpenses	4,475,000
EBIT	7,325,000
Interest Exp	1,084,000
EBT	6,241,000
Tax	1,975,432
Net income	B 4,265,568

2

DDD Inc.

Balance sheet

For the year 2017

***** In Thai Bhat (B)

Assets
Cash	B 40,000,000
Account Receivable	92,000,000
Inventory	3,500,000
Total current assets	135,500,000
Fixed Assets
land	8,450,000
Building	23,500,000
Total assets	B 167,450,000
liabilities and Equity
liabilities
Notes payable	B 45,994,432
Account payable	4,390,000
Salaries payable	8,800.000
Total current liabilities	59,184,432
Bonds payable	78,900,000
Total liabilities	138,084,432
Equity
Common stock	3,100,000
APIC	22,000,000
Retained earnings	4,265,568
Total Equity	29,365,568
Total liabilities and Equity	B 167,450,000