1. On Jan, 1 2014, Peter Corp. (a U.S. based company) formed a new subsidiary in Saudi Arabia, Saeed Inc., with an initial investment of 30,000 SAR.

Assume Saeed Inc.

Purchases inventory evenly throughout 2014. The ending inventory is purchased Nov. 30, 2014.

Uses straight-line depreciation on fixed assets.

Declares and pays dividends on Nov. 30, 2014.

Purchased the fixed assets on April 1, 2014.

Uses SAR as the functional currency.

Exchange Rates are given:

Jan 1, 2014 0.260

April 1, 2014 0.255

Nov. 30, 2014 0.240

Dec. 31, 2014 0.238

REQUIRED

Prepare a schedule to translate Saeeds financial statements on Dec. 31, 2014 to U.S. dollars. (2 Marks)

Accounts	SAR
Cash	5000
Account Receivable	12000
Inventory	32000
Note Receivables	5000
Plant & Equipment	70000
Cost of Goods sold	32000
Depreciation	2000
Other Expenses	18000
Dividends	16000
Total Debits	192000
ACC. OC Translation Adjustment (Debit)
Adjusted Total Credit
Accumulated Depreciation	2000
Account Payable	12000
Bonds Payable	36000
Mortgage Payable	46000
Common Stock	30000
Sales	66000
Total Credits	192000