Here are two examples we used in CH 10. I have made a change on the...

  
 

 

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Here are two examples we used in CH 10. I have made a change on the exchange rate on 1/1/2010 (from 0.50 to 0.55). Everything else remains the same. Please make necessary updates on the worksheet (put down your answers for blanks (1) to (14) with clear labels, such as (1), (2), etc.). (20 points) 1/1/2010: Subsidiary was formed; Ex. Rate was 0.50- 0.55. 1/1/2015: Exchange rate was 0.60 4/1/2015: Property was purchased; Ex. Rate was 0.62 4/15/2015: All the long-term debt were incurred; Ex.. Rate was 0.63. 10/1/2015: Dividends were declared; Ex. Rate was 0.67 12/31/2015: Exchange rate was 0.68 Avg. Rate for 2015: 0.64 Assumptions 1. Sales and inventory purchases ocurred evenly throughout the year 2. Common Stock and APIC have never changed since the recognition on 1/1/2000 3. Patent is fully amortized, hence no "patent" in balance sheet. Patent was acquired 1/1/2012, when Ex. Rate was 0.58 Current Rate Method Updated Exchange Updated USD CHF Exchange Rate Rate USD Sales 3,000,000 0.64 A 1,920,000 Cost of Goods Sold (2,000,000) 0.64 A (1,280,000) Gross Profit 1,000,000 n/a 640,000 Depreciation Expense (35,000) 0.64 A (22,400) Amortization Expense (25,000) 0.64 A (16,000) Other Expenses (110,000) 0.64 A (70,400) Income Before Taxes 830,000 n/a 531,200 Income Taxes (249,000) 0.64 A (159,360) Currency Exchange Gain/Loss n/a Net Income 581,000 n/a 371,840 Retained Earnings, 1/1 100,000 0.64 (given) 64,000 Net Income 581,000 n/a (above) 371,840 Dividends (150,000) 0.67 (100,500) Retained Earnings, 12/31 531,000 335,340 Assets CHF Exchange Rate USD Cash 121,000 0.68 82,280 Accounts Receivable 100,000 0.68 C 68,000 Inventory (evenly acquired this year) 450000 0.68 C 306,000 Property and Equipment 1,000,000 0.68 C 680,000 Accumulated Depreciation (120,000) 0.68 C (81,600) Total Assets 1,551,000 n/a 1,054,680 Liabilities and Equity Accounts Payable 500,000 0.68 340,000 Long-term Debt 200,000 0.68 136,000 Common Stock 100,000 0.50 H. (1) 50,000 (2) Additional PlC 220,000 0.50 H. (3) 110,000 (4) Retained Earnings 12/31 531,000 n/a (above) 335,340 OCI-Cumulative Trans. Adj. n/a plug-in 83,340 (5) (=Total Assets) Total Liabilities and Equity 1,551,000 n/a 1,054,680 Temporal Method Updated Exchange Rate Updated USD CHF Exchange Rate USD Sales 3,000,000 0.64 A 1,920,000 Cost of Goods Sold (2,000,000) 0.64 A (1,280,000) Gross Profit 1,000,000 n/a 640,000 Depreciation Expense (35,000) 0.62 (21,700) Amortization Expense (25,000) 0.58 H. (14,500) Other Expenses (110,000) 0.64 A (70,400) Income Before Taxes 830,000 n/a 533,400 Income Taxes (249,000) 0.64 A (159,360) Currency Exchange Gain/Loss n/a (plug-in) 10,340 (6) Net Income 581,000 n/a (below) 384,380 (7) Retained Earnings, 1/1 100,000 0.64 (given) 64,000 Net Income 581,000 n/a (plug-in) 384,380 (8) Dividends (150,000) 0.67 H (100,500) Retained Earnings, 12/31 531,000 n/a (below) 347,880 (9) Assets CHF Exchange Rate USD Cash 121,000 0.68 C 82,280 Accounts Receivable 100,000 0.68 68,000 Inventory (evenly acquired this year) 450000 0.64 A 288,000 Property and Equipment 1,000,000 0.62 H 620,000 Accumulated Depreciation (120,000) 0.62 (74,400) Total Assets 1,551,000 n/a 983,880 Liabilities and Equity Accounts Payable 500,000 0.68 C 340,000 Long-term Debt 200,000 0.68 136,000 50,000 (11) 110,000 (13) 347,880 (14) Common Stock 100,000 0.50 (10) Additional PIC 220,000 0.50 H. (12) Retained Earnings 12/31 531,000 n/a plug-in OCI-Cumulative Trans. Adj. n/a Total Liabilities and Equity 1,551,000 n/a (=Total Assets) 983,880 Here are two examples we used in CH 10. I have made a change on the exchange rate on 1/1/2010 (from 0.50 to 0.55). Everything else remains the same. Please make necessary updates on the worksheet (put down your answers for blanks (1) to (14) with clear labels, such as (1), (2), etc.). (20 points) 1/1/2010: Subsidiary was formed; Ex. Rate was 0.50- 0.55. 1/1/2015: Exchange rate was 0.60 4/1/2015: Property was purchased; Ex. Rate was 0.62 4/15/2015: All the long-term debt were incurred; Ex.. Rate was 0.63. 10/1/2015: Dividends were declared; Ex. Rate was 0.67 12/31/2015: Exchange rate was 0.68 Avg. Rate for 2015: 0.64 Assumptions 1. Sales and inventory purchases ocurred evenly throughout the year 2. Common Stock and APIC have never changed since the recognition on 1/1/2000 3. Patent is fully amortized, hence no "patent" in balance sheet. Patent was acquired 1/1/2012, when Ex. Rate was 0.58 Current Rate Method Updated Exchange Updated USD CHF Exchange Rate Rate USD Sales 3,000,000 0.64 A 1,920,000 Cost of Goods Sold (2,000,000) 0.64 A (1,280,000) Gross Profit 1,000,000 n/a 640,000 Depreciation Expense (35,000) 0.64 A (22,400) Amortization Expense (25,000) 0.64 A (16,000) Other Expenses (110,000) 0.64 A (70,400) Income Before Taxes 830,000 n/a 531,200 Income Taxes (249,000) 0.64 A (159,360) Currency Exchange Gain/Loss n/a Net Income 581,000 n/a 371,840 Retained Earnings, 1/1 100,000 0.64 (given) 64,000 Net Income 581,000 n/a (above) 371,840 Dividends (150,000) 0.67 (100,500) Retained Earnings, 12/31 531,000 335,340 Assets CHF Exchange Rate USD Cash 121,000 0.68 82,280 Accounts Receivable 100,000 0.68 C 68,000 Inventory (evenly acquired this year) 450000 0.68 C 306,000 Property and Equipment 1,000,000 0.68 C 680,000 Accumulated Depreciation (120,000) 0.68 C (81,600) Total Assets 1,551,000 n/a 1,054,680 Liabilities and Equity Accounts Payable 500,000 0.68 340,000 Long-term Debt 200,000 0.68 136,000 Common Stock 100,000 0.50 H. (1) 50,000 (2) Additional PlC 220,000 0.50 H. (3) 110,000 (4) Retained Earnings 12/31 531,000 n/a (above) 335,340 OCI-Cumulative Trans. Adj. n/a plug-in 83,340 (5) (=Total Assets) Total Liabilities and Equity 1,551,000 n/a 1,054,680 Temporal Method Updated Exchange Rate Updated USD CHF Exchange Rate USD Sales 3,000,000 0.64 A 1,920,000 Cost of Goods Sold (2,000,000) 0.64 A (1,280,000) Gross Profit 1,000,000 n/a 640,000 Depreciation Expense (35,000) 0.62 (21,700) Amortization Expense (25,000) 0.58 H. (14,500) Other Expenses (110,000) 0.64 A (70,400) Income Before Taxes 830,000 n/a 533,400 Income Taxes (249,000) 0.64 A (159,360) Currency Exchange Gain/Loss n/a (plug-in) 10,340 (6) Net Income 581,000 n/a (below) 384,380 (7) Retained Earnings, 1/1 100,000 0.64 (given) 64,000 Net Income 581,000 n/a (plug-in) 384,380 (8) Dividends (150,000) 0.67 H (100,500) Retained Earnings, 12/31 531,000 n/a (below) 347,880 (9) Assets CHF Exchange Rate USD Cash 121,000 0.68 C 82,280 Accounts Receivable 100,000 0.68 68,000 Inventory (evenly acquired this year) 450000 0.64 A 288,000 Property and Equipment 1,000,000 0.62 H 620,000 Accumulated Depreciation (120,000) 0.62 (74,400) Total Assets 1,551,000 n/a 983,880 Liabilities and Equity Accounts Payable 500,000 0.68 C 340,000 Long-term Debt 200,000 0.68 136,000 50,000 (11) 110,000 (13) 347,880 (14) Common Stock 100,000 0.50 (10) Additional PIC 220,000 0.50 H. (12) Retained Earnings 12/31 531,000 n/a plug-in OCI-Cumulative Trans. Adj. n/a Total Liabilities and Equity 1,551,000 n/a (=Total Assets) 983,880 Here are two examples we used in CH 10. I have made a change on the exchange rate on 1/1/2010 (from 0.50 to 0.55). Everything else remains the same. Please make necessary updates on the worksheet (put down your answers for blanks (1) to (14) with clear labels, such as (1), (2), etc.). (20 points) 1/1/2010: Subsidiary was formed; Ex. Rate was 0.50- 0.55. 1/1/2015: Exchange rate was 0.60 4/1/2015: Property was purchased; Ex. Rate was 0.62 4/15/2015: All the long-term debt were incurred; Ex.. Rate was 0.63. 10/1/2015: Dividends were declared; Ex. Rate was 0.67 12/31/2015: Exchange rate was 0.68 Avg. Rate for 2015: 0.64 Assumptions 1. Sales and inventory purchases ocurred evenly throughout the year 2. Common Stock and APIC have never changed since the recognition on 1/1/2000 3. Patent is fully amortized, hence no "patent" in balance sheet. Patent was acquired 1/1/2012, when Ex. Rate was 0.58 Current Rate Method Updated Exchange Updated USD CHF Exchange Rate Rate USD Sales 3,000,000 0.64 A 1,920,000 Cost of Goods Sold (2,000,000) 0.64 A (1,280,000) Gross Profit 1,000,000 n/a 640,000 Depreciation Expense (35,000) 0.64 A (22,400) Amortization Expense (25,000) 0.64 A (16,000) Other Expenses (110,000) 0.64 A (70,400) Income Before Taxes 830,000 n/a 531,200 Income Taxes (249,000) 0.64 A (159,360) Currency Exchange Gain/Loss n/a Net Income 581,000 n/a 371,840 Retained Earnings, 1/1 100,000 0.64 (given) 64,000 Net Income 581,000 n/a (above) 371,840 Dividends (150,000) 0.67 (100,500) Retained Earnings, 12/31 531,000 335,340 Assets CHF Exchange Rate USD Cash 121,000 0.68 82,280 Accounts Receivable 100,000 0.68 C 68,000 Inventory (evenly acquired this year) 450000 0.68 C 306,000 Property and Equipment 1,000,000 0.68 C 680,000 Accumulated Depreciation (120,000) 0.68 C (81,600) Total Assets 1,551,000 n/a 1,054,680 Liabilities and Equity Accounts Payable 500,000 0.68 340,000 Long-term Debt 200,000 0.68 136,000 Common Stock 100,000 0.50 H. (1) 50,000 (2) Additional PlC 220,000 0.50 H. (3) 110,000 (4) Retained Earnings 12/31 531,000 n/a (above) 335,340 OCI-Cumulative Trans. Adj. n/a plug-in 83,340 (5) (=Total Assets) Total Liabilities and Equity 1,551,000 n/a 1,054,680 Temporal Method Updated Exchange Rate Updated USD CHF Exchange Rate USD Sales 3,000,000 0.64 A 1,920,000 Cost of Goods Sold (2,000,000) 0.64 A (1,280,000) Gross Profit 1,000,000 n/a 640,000 Depreciation Expense (35,000) 0.62 (21,700) Amortization Expense (25,000) 0.58 H. (14,500) Other Expenses (110,000) 0.64 A (70,400) Income Before Taxes 830,000 n/a 533,400 Income Taxes (249,000) 0.64 A (159,360) Currency Exchange Gain/Loss n/a (plug-in) 10,340 (6) Net Income 581,000 n/a (below) 384,380 (7) Retained Earnings, 1/1 100,000 0.64 (given) 64,000 Net Income 581,000 n/a (plug-in) 384,380 (8) Dividends (150,000) 0.67 H (100,500) Retained Earnings, 12/31 531,000 n/a (below) 347,880 (9) Assets CHF Exchange Rate USD Cash 121,000 0.68 C 82,280 Accounts Receivable 100,000 0.68 68,000 Inventory (evenly acquired this year) 450000 0.64 A 288,000 Property and Equipment 1,000,000 0.62 H 620,000 Accumulated Depreciation (120,000) 0.62 (74,400) Total Assets 1,551,000 n/a 983,880 Liabilities and Equity Accounts Payable 500,000 0.68 C 340,000 Long-term Debt 200,000 0.68 136,000 50,000 (11) 110,000 (13) 347,880 (14) Common Stock 100,000 0.50 (10) Additional PIC 220,000 0.50 H. (12) Retained Earnings 12/31 531,000 n/a plug-in OCI-Cumulative Trans. Adj. n/a Total Liabilities and Equity 1,551,000 n/a (=Total Assets) 983,880 Here are two examples we used in CH 10. I have made a change on the exchange rate on 1/1/2010 (from 0.50 to 0.55). Everything else remains the same. Please make necessary updates on the worksheet (put down your answers for blanks (1) to (14) with clear labels, such as (1), (2), etc.). (20 points) 1/1/2010: Subsidiary was formed; Ex. Rate was 0.50- 0.55. 1/1/2015: Exchange rate was 0.60 4/1/2015: Property was purchased; Ex. Rate was 0.62 4/15/2015: All the long-term debt were incurred; Ex.. Rate was 0.63. 10/1/2015: Dividends were declared; Ex. Rate was 0.67 12/31/2015: Exchange rate was 0.68 Avg. Rate for 2015: 0.64 Assumptions 1. Sales and inventory purchases ocurred evenly throughout the year 2. Common Stock and APIC have never changed since the recognition on 1/1/2000 3. Patent is fully amortized, hence no "patent" in balance sheet. Patent was acquired 1/1/2012, when Ex. Rate was 0.58 Current Rate Method Updated Exchange Updated USD CHF Exchange Rate Rate USD Sales 3,000,000 0.64 A 1,920,000 Cost of Goods Sold (2,000,000) 0.64 A (1,280,000) Gross Profit 1,000,000 n/a 640,000 Depreciation Expense (35,000) 0.64 A (22,400) Amortization Expense (25,000) 0.64 A (16,000) Other Expenses (110,000) 0.64 A (70,400) Income Before Taxes 830,000 n/a 531,200 Income Taxes (249,000) 0.64 A (159,360) Currency Exchange Gain/Loss n/a Net Income 581,000 n/a 371,840 Retained Earnings, 1/1 100,000 0.64 (given) 64,000 Net Income 581,000 n/a (above) 371,840 Dividends (150,000) 0.67 (100,500) Retained Earnings, 12/31 531,000 335,340 Assets CHF Exchange Rate USD Cash 121,000 0.68 82,280 Accounts Receivable 100,000 0.68 C 68,000 Inventory (evenly acquired this year) 450000 0.68 C 306,000 Property and Equipment 1,000,000 0.68 C 680,000 Accumulated Depreciation (120,000) 0.68 C (81,600) Total Assets 1,551,000 n/a 1,054,680 Liabilities and Equity Accounts Payable 500,000 0.68 340,000 Long-term Debt 200,000 0.68 136,000 Common Stock 100,000 0.50 H. (1) 50,000 (2) Additional PlC 220,000 0.50 H. (3) 110,000 (4) Retained Earnings 12/31 531,000 n/a (above) 335,340 OCI-Cumulative Trans. Adj. n/a plug-in 83,340 (5) (=Total Assets) Total Liabilities and Equity 1,551,000 n/a 1,054,680 Temporal Method Updated Exchange Rate Updated USD CHF Exchange Rate USD Sales 3,000,000 0.64 A 1,920,000 Cost of Goods Sold (2,000,000) 0.64 A (1,280,000) Gross Profit 1,000,000 n/a 640,000 Depreciation Expense (35,000) 0.62 (21,700) Amortization Expense (25,000) 0.58 H. (14,500) Other Expenses (110,000) 0.64 A (70,400) Income Before Taxes 830,000 n/a 533,400 Income Taxes (249,000) 0.64 A (159,360) Currency Exchange Gain/Loss n/a (plug-in) 10,340 (6) Net Income 581,000 n/a (below) 384,380 (7) Retained Earnings, 1/1 100,000 0.64 (given) 64,000 Net Income 581,000 n/a (plug-in) 384,380 (8) Dividends (150,000) 0.67 H (100,500) Retained Earnings, 12/31 531,000 n/a (below) 347,880 (9) Assets CHF Exchange Rate USD Cash 121,000 0.68 C 82,280 Accounts Receivable 100,000 0.68 68,000 Inventory (evenly acquired this year) 450000 0.64 A 288,000 Property and Equipment 1,000,000 0.62 H 620,000 Accumulated Depreciation (120,000) 0.62 (74,400) Total Assets 1,551,000 n/a 983,880 Liabilities and Equity Accounts Payable 500,000 0.68 C 340,000 Long-term Debt 200,000 0.68 136,000 50,000 (11) 110,000 (13) 347,880 (14) Common Stock 100,000 0.50 (10) Additional PIC 220,000 0.50 H. (12) Retained Earnings 12/31 531,000 n/a plug-in OCI-Cumulative Trans. Adj. n/a Total Liabilities and Equity 1,551,000 n/a (=Total Assets) 983,880 Here are two examples we used in CH 10. I have made a change on the exchange rate on 1/1/2010 (from 0.50 to 0.55). Everything else remains the same. Please make necessary updates on the worksheet (put down your answers for blanks (1) to (14) with clear labels, such as (1), (2), etc.). (20 points) 1/1/2010: Subsidiary was formed; Ex. Rate was 0.50- 0.55. 1/1/2015: Exchange rate was 0.60 4/1/2015: Property was purchased; Ex. Rate was 0.62 4/15/2015: All the long-term debt were incurred; Ex.. Rate was 0.63. 10/1/2015: Dividends were declared; Ex. Rate was 0.67 12/31/2015: Exchange rate was 0.68 Avg. Rate for 2015: 0.64 Assumptions 1. Sales and inventory purchases ocurred evenly throughout the year 2. Common Stock and APIC have never changed since the recognition on 1/1/2000 3. Patent is fully amortized, hence no "patent" in balance sheet. Patent was acquired 1/1/2012, when Ex. Rate was 0.58 Current Rate Method Updated Exchange Updated USD CHF Exchange Rate Rate USD Sales 3,000,000 0.64 A 1,920,000 Cost of Goods Sold (2,000,000) 0.64 A (1,280,000) Gross Profit 1,000,000 n/a 640,000 Depreciation Expense (35,000) 0.64 A (22,400) Amortization Expense (25,000) 0.64 A (16,000) Other Expenses (110,000) 0.64 A (70,400) Income Before Taxes 830,000 n/a 531,200 Income Taxes (249,000) 0.64 A (159,360) Currency Exchange Gain/Loss n/a Net Income 581,000 n/a 371,840 Retained Earnings, 1/1 100,000 0.64 (given) 64,000 Net Income 581,000 n/a (above) 371,840 Dividends (150,000) 0.67 (100,500) Retained Earnings, 12/31 531,000 335,340 Assets CHF Exchange Rate USD Cash 121,000 0.68 82,280 Accounts Receivable 100,000 0.68 C 68,000 Inventory (evenly acquired this year) 450000 0.68 C 306,000 Property and Equipment 1,000,000 0.68 C 680,000 Accumulated Depreciation (120,000) 0.68 C (81,600) Total Assets 1,551,000 n/a 1,054,680 Liabilities and Equity Accounts Payable 500,000 0.68 340,000 Long-term Debt 200,000 0.68 136,000 Common Stock 100,000 0.50 H. (1) 50,000 (2) Additional PlC 220,000 0.50 H. (3) 110,000 (4) Retained Earnings 12/31 531,000 n/a (above) 335,340 OCI-Cumulative Trans. Adj. n/a plug-in 83,340 (5) (=Total Assets) Total Liabilities and Equity 1,551,000 n/a 1,054,680 Temporal Method Updated Exchange Rate Updated USD CHF Exchange Rate USD Sales 3,000,000 0.64 A 1,920,000 Cost of Goods Sold (2,000,000) 0.64 A (1,280,000) Gross Profit 1,000,000 n/a 640,000 Depreciation Expense (35,000) 0.62 (21,700) Amortization Expense (25,000) 0.58 H. (14,500) Other Expenses (110,000) 0.64 A (70,400) Income Before Taxes 830,000 n/a 533,400 Income Taxes (249,000) 0.64 A (159,360) Currency Exchange Gain/Loss n/a (plug-in) 10,340 (6) Net Income 581,000 n/a (below) 384,380 (7) Retained Earnings, 1/1 100,000 0.64 (given) 64,000 Net Income 581,000 n/a (plug-in) 384,380 (8) Dividends (150,000) 0.67 H (100,500) Retained Earnings, 12/31 531,000 n/a (below) 347,880 (9) Assets CHF Exchange Rate USD Cash 121,000 0.68 C 82,280 Accounts Receivable 100,000 0.68 68,000 Inventory (evenly acquired this year) 450000 0.64 A 288,000 Property and Equipment 1,000,000 0.62 H 620,000 Accumulated Depreciation (120,000) 0.62 (74,400) Total Assets 1,551,000 n/a 983,880 Liabilities and Equity Accounts Payable 500,000 0.68 C 340,000 Long-term Debt 200,000 0.68 136,000 50,000 (11) 110,000 (13) 347,880 (14) Common Stock 100,000 0.50 (10) Additional PIC 220,000 0.50 H. (12) Retained Earnings 12/31 531,000 n/a plug-in OCI-Cumulative Trans. Adj. n/a Total Liabilities and Equity 1,551,000 n/a (=Total Assets) 983,880 Here are two examples we used in CH 10. I have made a change on the exchange rate on 1/1/2010 (from 0.50 to 0.55). Everything else remains the same. Please make necessary updates on the worksheet (put down your answers for blanks (1) to (14) with clear labels, such as (1), (2), etc.). (20 points) 1/1/2010: Subsidiary was formed; Ex. Rate was 0.50- 0.55. 1/1/2015: Exchange rate was 0.60 4/1/2015: Property was purchased; Ex. Rate was 0.62 4/15/2015: All the long-term debt were incurred; Ex.. Rate was 0.63. 10/1/2015: Dividends were declared; Ex. Rate was 0.67 12/31/2015: Exchange rate was 0.68 Avg. Rate for 2015: 0.64 Assumptions 1. Sales and inventory purchases ocurred evenly throughout the year 2. Common Stock and APIC have never changed since the recognition on 1/1/2000 3. Patent is fully amortized, hence no "patent" in balance sheet. Patent was acquired 1/1/2012, when Ex. Rate was 0.58 Current Rate Method Updated Exchange Updated USD CHF Exchange Rate Rate USD Sales 3,000,000 0.64 A 1,920,000 Cost of Goods Sold (2,000,000) 0.64 A (1,280,000) Gross Profit 1,000,000 n/a 640,000 Depreciation Expense (35,000) 0.64 A (22,400) Amortization Expense (25,000) 0.64 A (16,000) Other Expenses (110,000) 0.64 A (70,400) Income Before Taxes 830,000 n/a 531,200 Income Taxes (249,000) 0.64 A (159,360) Currency Exchange Gain/Loss n/a Net Income 581,000 n/a 371,840 Retained Earnings, 1/1 100,000 0.64 (given) 64,000 Net Income 581,000 n/a (above) 371,840 Dividends (150,000) 0.67 (100,500) Retained Earnings, 12/31 531,000 335,340 Assets CHF Exchange Rate USD Cash 121,000 0.68 82,280 Accounts Receivable 100,000 0.68 C 68,000 Inventory (evenly acquired this year) 450000 0.68 C 306,000 Property and Equipment 1,000,000 0.68 C 680,000 Accumulated Depreciation (120,000) 0.68 C (81,600) Total Assets 1,551,000 n/a 1,054,680 Liabilities and Equity Accounts Payable 500,000 0.68 340,000 Long-term Debt 200,000 0.68 136,000 Common Stock 100,000 0.50 H. (1) 50,000 (2) Additional PlC 220,000 0.50 H. (3) 110,000 (4) Retained Earnings 12/31 531,000 n/a (above) 335,340 OCI-Cumulative Trans. Adj. n/a plug-in 83,340 (5) (=Total Assets) Total Liabilities and Equity 1,551,000 n/a 1,054,680 Temporal Method Updated Exchange Rate Updated USD CHF Exchange Rate USD Sales 3,000,000 0.64 A 1,920,000 Cost of Goods Sold (2,000,000) 0.64 A (1,280,000) Gross Profit 1,000,000 n/a 640,000 Depreciation Expense (35,000) 0.62 (21,700) Amortization Expense (25,000) 0.58 H. (14,500) Other Expenses (110,000) 0.64 A (70,400) Income Before Taxes 830,000 n/a 533,400 Income Taxes (249,000) 0.64 A (159,360) Currency Exchange Gain/Loss n/a (plug-in) 10,340 (6) Net Income 581,000 n/a (below) 384,380 (7) Retained Earnings, 1/1 100,000 0.64 (given) 64,000 Net Income 581,000 n/a (plug-in) 384,380 (8) Dividends (150,000) 0.67 H (100,500) Retained Earnings, 12/31 531,000 n/a (below) 347,880 (9) Assets CHF Exchange Rate USD Cash 121,000 0.68 C 82,280 Accounts Receivable 100,000 0.68 68,000 Inventory (evenly acquired this year) 450000 0.64 A 288,000 Property and Equipment 1,000,000 0.62 H 620,000 Accumulated Depreciation (120,000) 0.62 (74,400) Total Assets 1,551,000 n/a 983,880 Liabilities and Equity Accounts Payable 500,000 0.68 C 340,000 Long-term Debt 200,000 0.68 136,000 50,000 (11) 110,000 (13) 347,880 (14) Common Stock 100,000 0.50 (10) Additional PIC 220,000 0.50 H. (12) Retained Earnings 12/31 531,000 n/a plug-in OCI-Cumulative Trans. Adj. n/a Total Liabilities and Equity 1,551,000 n/a (=Total Assets) 983,880 Here are two examples we used in CH 10. I have made a change on the exchange rate on 1/1/2010 (from 0.50 to 0.55). Everything else remains the same. Please make necessary updates on the worksheet (put down your answers for blanks (1) to (14) with clear labels, such as (1), (2), etc.). (20 points) 1/1/2010: Subsidiary was formed; Ex. Rate was 0.50- 0.55. 1/1/2015: Exchange rate was 0.60 4/1/2015: Property was purchased; Ex. Rate was 0.62 4/15/2015: All the long-term debt were incurred; Ex.. Rate was 0.63. 10/1/2015: Dividends were declared; Ex. Rate was 0.67 12/31/2015: Exchange rate was 0.68 Avg. Rate for 2015: 0.64 Assumptions 1. Sales and inventory purchases ocurred evenly throughout the year 2. Common Stock and APIC have never changed since the recognition on 1/1/2000 3. Patent is fully amortized, hence no "patent" in balance sheet. Patent was acquired 1/1/2012, when Ex. Rate was 0.58 Current Rate Method Updated Exchange Updated USD CHF Exchange Rate Rate USD Sales 3,000,000 0.64 A 1,920,000 Cost of Goods Sold (2,000,000) 0.64 A (1,280,000) Gross Profit 1,000,000 n/a 640,000 Depreciation Expense (35,000) 0.64 A (22,400) Amortization Expense (25,000) 0.64 A (16,000) Other Expenses (110,000) 0.64 A (70,400) Income Before Taxes 830,000 n/a 531,200 Income Taxes (249,000) 0.64 A (159,360) Currency Exchange Gain/Loss n/a Net Income 581,000 n/a 371,840 Retained Earnings, 1/1 100,000 0.64 (given) 64,000 Net Income 581,000 n/a (above) 371,840 Dividends (150,000) 0.67 (100,500) Retained Earnings, 12/31 531,000 335,340 Assets CHF Exchange Rate USD Cash 121,000 0.68 82,280 Accounts Receivable 100,000 0.68 C 68,000 Inventory (evenly acquired this year) 450000 0.68 C 306,000 Property and Equipment 1,000,000 0.68 C 680,000 Accumulated Depreciation (120,000) 0.68 C (81,600) Total Assets 1,551,000 n/a 1,054,680 Liabilities and Equity Accounts Payable 500,000 0.68 340,000 Long-term Debt 200,000 0.68 136,000 Common Stock 100,000 0.50 H. (1) 50,000 (2) Additional PlC 220,000 0.50 H. (3) 110,000 (4) Retained Earnings 12/31 531,000 n/a (above) 335,340 OCI-Cumulative Trans. Adj. n/a plug-in 83,340 (5) (=Total Assets) Total Liabilities and Equity 1,551,000 n/a 1,054,680 Temporal Method Updated Exchange Rate Updated USD CHF Exchange Rate USD Sales 3,000,000 0.64 A 1,920,000 Cost of Goods Sold (2,000,000) 0.64 A (1,280,000) Gross Profit 1,000,000 n/a 640,000 Depreciation Expense (35,000) 0.62 (21,700) Amortization Expense (25,000) 0.58 H. (14,500) Other Expenses (110,000) 0.64 A (70,400) Income Before Taxes 830,000 n/a 533,400 Income Taxes (249,000) 0.64 A (159,360) Currency Exchange Gain/Loss n/a (plug-in) 10,340 (6) Net Income 581,000 n/a (below) 384,380 (7) Retained Earnings, 1/1 100,000 0.64 (given) 64,000 Net Income 581,000 n/a (plug-in) 384,380 (8) Dividends (150,000) 0.67 H (100,500) Retained Earnings, 12/31 531,000 n/a (below) 347,880 (9) Assets CHF Exchange Rate USD Cash 121,000 0.68 C 82,280 Accounts Receivable 100,000 0.68 68,000 Inventory (evenly acquired this year) 450000 0.64 A 288,000 Property and Equipment 1,000,000 0.62 H 620,000 Accumulated Depreciation (120,000) 0.62 (74,400) Total Assets 1,551,000 n/a 983,880 Liabilities and Equity Accounts Payable 500,000 0.68 C 340,000 Long-term Debt 200,000 0.68 136,000 50,000 (11) 110,000 (13) 347,880 (14) Common Stock 100,000 0.50 (10) Additional PIC 220,000 0.50 H. (12) Retained Earnings 12/31 531,000 n/a plug-in OCI-Cumulative Trans. Adj. n/a Total Liabilities and Equity 1,551,000 n/a (=Total Assets) 983,880 Here are two examples we used in CH 10. I have made a change on the exchange rate on 1/1/2010 (from 0.50 to 0.55). Everything else remains the same. Please make necessary updates on the worksheet (put down your answers for blanks (1) to (14) with clear labels, such as (1), (2), etc.). (20 points) 1/1/2010: Subsidiary was formed; Ex. Rate was 0.50- 0.55. 1/1/2015: Exchange rate was 0.60 4/1/2015: Property was purchased; Ex. Rate was 0.62 4/15/2015: All the long-term debt were incurred; Ex.. Rate was 0.63. 10/1/2015: Dividends were declared; Ex. Rate was 0.67 12/31/2015: Exchange rate was 0.68 Avg. Rate for 2015: 0.64 Assumptions 1. Sales and inventory purchases ocurred evenly throughout the year 2. Common Stock and APIC have never changed since the recognition on 1/1/2000 3. Patent is fully amortized, hence no "patent" in balance sheet. Patent was acquired 1/1/2012, when Ex. Rate was 0.58 Current Rate Method Updated Exchange Updated USD CHF Exchange Rate Rate USD Sales 3,000,000 0.64 A 1,920,000 Cost of Goods Sold (2,000,000) 0.64 A (1,280,000) Gross Profit 1,000,000 n/a 640,000 Depreciation Expense (35,000) 0.64 A (22,400) Amortization Expense (25,000) 0.64 A (16,000) Other Expenses (110,000) 0.64 A (70,400) Income Before Taxes 830,000 n/a 531,200 Income Taxes (249,000) 0.64 A (159,360) Currency Exchange Gain/Loss n/a Net Income 581,000 n/a 371,840 Retained Earnings, 1/1 100,000 0.64 (given) 64,000 Net Income 581,000 n/a (above) 371,840 Dividends (150,000) 0.67 (100,500) Retained Earnings, 12/31 531,000 335,340 Assets CHF Exchange Rate USD Cash 121,000 0.68 82,280 Accounts Receivable 100,000 0.68 C 68,000 Inventory (evenly acquired this year) 450000 0.68 C 306,000 Property and Equipment 1,000,000 0.68 C 680,000 Accumulated Depreciation (120,000) 0.68 C (81,600) Total Assets 1,551,000 n/a 1,054,680 Liabilities and Equity Accounts Payable 500,000 0.68 340,000 Long-term Debt 200,000 0.68 136,000 Common Stock 100,000 0.50 H. (1) 50,000 (2) Additional PlC 220,000 0.50 H. (3) 110,000 (4) Retained Earnings 12/31 531,000 n/a (above) 335,340 OCI-Cumulative Trans. Adj. n/a plug-in 83,340 (5) (=Total Assets) Total Liabilities and Equity 1,551,000 n/a 1,054,680 Temporal Method Updated Exchange Rate Updated USD CHF Exchange Rate USD Sales 3,000,000 0.64 A 1,920,000 Cost of Goods Sold (2,000,000) 0.64 A (1,280,000) Gross Profit 1,000,000 n/a 640,000 Depreciation Expense (35,000) 0.62 (21,700) Amortization Expense (25,000) 0.58 H. (14,500) Other Expenses (110,000) 0.64 A (70,400) Income Before Taxes 830,000 n/a 533,400 Income Taxes (249,000) 0.64 A (159,360) Currency Exchange Gain/Loss n/a (plug-in) 10,340 (6) Net Income 581,000 n/a (below) 384,380 (7) Retained Earnings, 1/1 100,000 0.64 (given) 64,000 Net Income 581,000 n/a (plug-in) 384,380 (8) Dividends (150,000) 0.67 H (100,500) Retained Earnings, 12/31 531,000 n/a (below) 347,880 (9) Assets CHF Exchange Rate USD Cash 121,000 0.68 C 82,280 Accounts Receivable 100,000 0.68 68,000 Inventory (evenly acquired this year) 450000 0.64 A 288,000 Property and Equipment 1,000,000 0.62 H 620,000 Accumulated Depreciation (120,000) 0.62 (74,400) Total Assets 1,551,000 n/a 983,880 Liabilities and Equity Accounts Payable 500,000 0.68 C 340,000 Long-term Debt 200,000 0.68 136,000 50,000 (11) 110,000 (13) 347,880 (14) Common Stock 100,000 0.50 (10) Additional PIC 220,000 0.50 H. (12) Retained Earnings 12/31 531,000 n/a plug-in OCI-Cumulative Trans. Adj. n/a Total Liabilities and Equity 1,551,000 n/a (=Total Assets) 983,880 Here are two examples we used in CH 10. I have made a change on the exchange rate on 1/1/2010 (from 0.50 to 0.55). Everything else remains the same. Please make necessary updates on the worksheet (put down your answers for blanks (1) to (14) with clear labels, such as (1), (2), etc.). (20 points) 1/1/2010: Subsidiary was formed; Ex. Rate was 0.50- 0.55. 1/1/2015: Exchange rate was 0.60 4/1/2015: Property was purchased; Ex. Rate was 0.62 4/15/2015: All the long-term debt were incurred; Ex.. Rate was 0.63. 10/1/2015: Dividends were declared; Ex. Rate was 0.67 12/31/2015: Exchange rate was 0.68 Avg. Rate for 2015: 0.64 Assumptions 1. Sales and inventory purchases ocurred evenly throughout the year 2. Common Stock and APIC have never changed since the recognition on 1/1/2000 3. Patent is fully amortized, hence no "patent" in balance sheet. Patent was acquired 1/1/2012, when Ex. Rate was 0.58 Current Rate Method Updated Exchange Updated USD CHF Exchange Rate Rate USD Sales 3,000,000 0.64 A 1,920,000 Cost of Goods Sold (2,000,000) 0.64 A (1,280,000) Gross Profit 1,000,000 n/a 640,000 Depreciation Expense (35,000) 0.64 A (22,400) Amortization Expense (25,000) 0.64 A (16,000) Other Expenses (110,000) 0.64 A (70,400) Income Before Taxes 830,000 n/a 531,200 Income Taxes (249,000) 0.64 A (159,360) Currency Exchange Gain/Loss n/a Net Income 581,000 n/a 371,840 Retained Earnings, 1/1 100,000 0.64 (given) 64,000 Net Income 581,000 n/a (above) 371,840 Dividends (150,000) 0.67 (100,500) Retained Earnings, 12/31 531,000 335,340 Assets CHF Exchange Rate USD Cash 121,000 0.68 82,280 Accounts Receivable 100,000 0.68 C 68,000 Inventory (evenly acquired this year) 450000 0.68 C 306,000 Property and Equipment 1,000,000 0.68 C 680,000 Accumulated Depreciation (120,000) 0.68 C (81,600) Total Assets 1,551,000 n/a 1,054,680 Liabilities and Equity Accounts Payable 500,000 0.68 340,000 Long-term Debt 200,000 0.68 136,000 Common Stock 100,000 0.50 H. (1) 50,000 (2) Additional PlC 220,000 0.50 H. (3) 110,000 (4) Retained Earnings 12/31 531,000 n/a (above) 335,340 OCI-Cumulative Trans. Adj. n/a plug-in 83,340 (5) (=Total Assets) Total Liabilities and Equity 1,551,000 n/a 1,054,680 Temporal Method Updated Exchange Rate Updated USD CHF Exchange Rate USD Sales 3,000,000 0.64 A 1,920,000 Cost of Goods Sold (2,000,000) 0.64 A (1,280,000) Gross Profit 1,000,000 n/a 640,000 Depreciation Expense (35,000) 0.62 (21,700) Amortization Expense (25,000) 0.58 H. (14,500) Other Expenses (110,000) 0.64 A (70,400) Income Before Taxes 830,000 n/a 533,400 Income Taxes (249,000) 0.64 A (159,360) Currency Exchange Gain/Loss n/a (plug-in) 10,340 (6) Net Income 581,000 n/a (below) 384,380 (7) Retained Earnings, 1/1 100,000 0.64 (given) 64,000 Net Income 581,000 n/a (plug-in) 384,380 (8) Dividends (150,000) 0.67 H (100,500) Retained Earnings, 12/31 531,000 n/a (below) 347,880 (9) Assets CHF Exchange Rate USD Cash 121,000 0.68 C 82,280 Accounts Receivable 100,000 0.68 68,000 Inventory (evenly acquired this year) 450000 0.64 A 288,000 Property and Equipment 1,000,000 0.62 H 620,000 Accumulated Depreciation (120,000) 0.62 (74,400) Total Assets 1,551,000 n/a 983,880 Liabilities and Equity Accounts Payable 500,000 0.68 C 340,000 Long-term Debt 200,000 0.68 136,000 50,000 (11) 110,000 (13) 347,880 (14) Common Stock 100,000 0.50 (10) Additional PIC 220,000 0.50 H. (12) Retained Earnings 12/31 531,000 n/a plug-in OCI-Cumulative Trans. Adj. n/a Total Liabilities and Equity 1,551,000 n/a (=Total Assets) 983,880 Here are two examples we used in CH 10. I have made a change on the exchange rate on 1/1/2010 (from 0.50 to 0.55). Everything else remains the same. Please make necessary updates on the worksheet (put down your answers for blanks (1) to (14) with clear labels, such as (1), (2), etc.). (20 points) 1/1/2010: Subsidiary was formed; Ex. Rate was 0.50- 0.55. 1/1/2015: Exchange rate was 0.60 4/1/2015: Property was purchased; Ex. Rate was 0.62 4/15/2015: All the long-term debt were incurred; Ex.. Rate was 0.63. 10/1/2015: Dividends were declared; Ex. Rate was 0.67 12/31/2015: Exchange rate was 0.68 Avg. Rate for 2015: 0.64 Assumptions 1. Sales and inventory purchases ocurred evenly throughout the year 2. Common Stock and APIC have never changed since the recognition on 1/1/2000 3. Patent is fully amortized, hence no "patent" in balance sheet. Patent was acquired 1/1/2012, when Ex. Rate was 0.58 Current Rate Method Updated Exchange Updated USD CHF Exchange Rate Rate USD Sales 3,000,000 0.64 A 1,920,000 Cost of Goods Sold (2,000,000) 0.64 A (1,280,000) Gross Profit 1,000,000 n/a 640,000 Depreciation Expense (35,000) 0.64 A (22,400) Amortization Expense (25,000) 0.64 A (16,000) Other Expenses (110,000) 0.64 A (70,400) Income Before Taxes 830,000 n/a 531,200 Income Taxes (249,000) 0.64 A (159,360) Currency Exchange Gain/Loss n/a Net Income 581,000 n/a 371,840 Retained Earnings, 1/1 100,000 0.64 (given) 64,000 Net Income 581,000 n/a (above) 371,840 Dividends (150,000) 0.67 (100,500) Retained Earnings, 12/31 531,000 335,340 Assets CHF Exchange Rate USD Cash 121,000 0.68 82,280 Accounts Receivable 100,000 0.68 C 68,000 Inventory (evenly acquired this year) 450000 0.68 C 306,000 Property and Equipment 1,000,000 0.68 C 680,000 Accumulated Depreciation (120,000) 0.68 C (81,600) Total Assets 1,551,000 n/a 1,054,680 Liabilities and Equity Accounts Payable 500,000 0.68 340,000 Long-term Debt 200,000 0.68 136,000 Common Stock 100,000 0.50 H. (1) 50,000 (2) Additional PlC 220,000 0.50 H. (3) 110,000 (4) Retained Earnings 12/31 531,000 n/a (above) 335,340 OCI-Cumulative Trans. Adj. n/a plug-in 83,340 (5) (=Total Assets) Total Liabilities and Equity 1,551,000 n/a 1,054,680 Temporal Method Updated Exchange Rate Updated USD CHF Exchange Rate USD Sales 3,000,000 0.64 A 1,920,000 Cost of Goods Sold (2,000,000) 0.64 A (1,280,000) Gross Profit 1,000,000 n/a 640,000 Depreciation Expense (35,000) 0.62 (21,700) Amortization Expense (25,000) 0.58 H. (14,500) Other Expenses (110,000) 0.64 A (70,400) Income Before Taxes 830,000 n/a 533,400 Income Taxes (249,000) 0.64 A (159,360) Currency Exchange Gain/Loss n/a (plug-in) 10,340 (6) Net Income 581,000 n/a (below) 384,380 (7) Retained Earnings, 1/1 100,000 0.64 (given) 64,000 Net Income 581,000 n/a (plug-in) 384,380 (8) Dividends (150,000) 0.67 H (100,500) Retained Earnings, 12/31 531,000 n/a (below) 347,880 (9) Assets CHF Exchange Rate USD Cash 121,000 0.68 C 82,280 Accounts Receivable 100,000 0.68 68,000 Inventory (evenly acquired this year) 450000 0.64 A 288,000 Property and Equipment 1,000,000 0.62 H 620,000 Accumulated Depreciation (120,000) 0.62 (74,400) Total Assets 1,551,000 n/a 983,880 Liabilities and Equity Accounts Payable 500,000 0.68 C 340,000 Long-term Debt 200,000 0.68 136,000 50,000 (11) 110,000 (13) 347,880 (14) Common Stock 100,000 0.50 (10) Additional PIC 220,000 0.50 H. (12) Retained Earnings 12/31 531,000 n/a plug-in OCI-Cumulative Trans. Adj. n/a Total Liabilities and Equity 1,551,000 n/a (=Total Assets) 983,880

Answer rating: 100% (QA)

1 055 2 055 3 55000 4 121000 5 67340 6 5660 7 368380 8 368380 9 331880 10 055 11 55000 12 055 13 121... View the full answer