Problem 11-8 (algorithmic) Question Help Bangkok Instruments, Ltd.(A). Bangkok Instruments, Ltd., the Thai subsidiary of a U.S. corporation, is a seismic instrument manufacturer. Bangkok Instruments manufactures the instruments primarily for the oil and gas industry globallythough with recent commodity price increases of all kinds including copper, its business has begun to grow rapidly. Sales are primarily to multinational companies based in the United States and Europe. Bangkok Instruments' balance sheet in thousands of Thai bahts (B) as of March 31 is shown in the popup window: Exchange rates for translating Bangkok Instruments' balance sheet into U.S. dollars are: B42.67/$ April 1 exchange rate, after 25% devaluation. B32.00/$ March 31 exchange rate, before 25% devaluation. All inventory was acquired at this rate. B22.00/$ Historic exchange rate at which plant and equipment were acquired. The Thai baht dropped in value from B32.00/$ to B42.67$ between March 31 and April 1. Assuming no change in balance sheet accounts between these two days, calculate the gain or loss from translation by both the current rate method and the temporal method. Bangkok Instruments' translated balance sheet using the current rate method is shown here, and the one using the temporal method is shown here, Explain the translation gain or loss in terms of changes in the value of exposed accounts. Using the translated balance sheet under the current rate method, s, what is the amount of translation gain or loss? Enter a positive number for a gain and negative for a loss. (Round to the nearest dollar.) Bangkok Instruments, Ltd. Balance Sheet, March 1 Assets Liabilities & Net Worth Cash B26,000,000 Accounts payable B20,000,000 Accounts receivable 36,000,000 Bank loans 59,000,000 Inventory 49,000,000 Common stock 17,000,000 Net plant & equipment 61,000,000 Retained earnings 76,000,000 B172,000,000 B172,000,000 Click on the icon located on the top-right corner of the data table in order to copy its contents into a spreadsheet. Print Donn 0 Bangkok Instruments' Translation Gain (Loss) After Depreciation of the Baht: Current Rate Method March 31 April 1 Exchange Translated Exchange Translated Assets In Bahts (B) Rate (B/$) Accounts ($) Rate (B/S) Accounts ($) Cash B26,000,000 32.00 $812,500 42.67 $609,327 Accounts receivable 36,000,000 32.00 1,125,000 42.67 843,684 Inventory 49,000,000 32.00 1,531,250 42.67 1,148,348 Net plant and equipment 61,000,000 32.00 1,906,250 42.67 1,429,576 Total B172,000,000 $5,375,000 $4,030,935 Liabilities and Net Worth Accounts payable B20,000,000 32.00 $625,000 42.67 $468,713 Bank loans 59,000,000 32.00 1,843,750 42.67 1,382,704 Common stock 17,000,000 22.00 772,727 22.00 772,727 Retained earnings 76,000,000 35.62 (a) 2,133,523 35.62 (b) 2,133,523 Translation adjustment (CTA) ? ? Total B172,000,000 $5,375,000 $4,030,935 (a) Dollar retained earnings before depreciation are the cumulative sum of additions to retained earnings of all prior years, translated to exchange rates in each year. (b) Translated into dollars at the same rate as before depreciation of the baht. Click on the icon located on the top-right corner of the data table in order to copy its contents into a spreadsheet. Problem 11-8 (algorithmic) Question Help Bangkok Instruments, Ltd.(A). Bangkok Instruments, Ltd., the Thai subsidiary of a U.S. corporation, is a seismic instrument manufacturer. Bangkok Instruments manufactures the instruments primarily for the oil and gas industry globallythough with recent commodity price increases of all kinds including copper, its business has begun to grow rapidly. Sales are primarily to multinational companies based in the United States and Europe. Bangkok Instruments' balance sheet in thousands of Thai bahts (B) as of March 31 is shown in the popup window: Exchange rates for translating Bangkok Instruments' balance sheet into U.S. dollars are: B42.67/$ April 1 exchange rate, after 25% devaluation. B32.00/$ March 31 exchange rate, before 25% devaluation. All inventory was acquired at this rate. B22.00/$ Historic exchange rate at which plant and equipment were acquired. The Thai baht dropped in value from B32.00/$ to B42.67$ between March 31 and April 1. Assuming no change in balance sheet accounts between these two days, calculate the gain or loss from translation by both the current rate method and the temporal method. Bangkok Instruments' translated balance sheet using the current rate method is shown here, and the one using the temporal method is shown here, Explain the translation gain or loss in terms of changes in the value of exposed accounts. Using the translated balance sheet under the current rate method, s, what is the amount of translation gain or loss? Enter a positive number for a gain and negative for a loss. (Round to the nearest dollar.) Bangkok Instruments, Ltd. Balance Sheet, March 1 Assets Liabilities & Net Worth Cash B26,000,000 Accounts payable B20,000,000 Accounts receivable 36,000,000 Bank loans 59,000,000 Inventory 49,000,000 Common stock 17,000,000 Net plant & equipment 61,000,000 Retained earnings 76,000,000 B172,000,000 B172,000,000 Click on the icon located on the top-right corner of the data table in order to copy its contents into a spreadsheet. Print Donn 0 Bangkok Instruments' Translation Gain (Loss) After Depreciation of the Baht: Current Rate Method March 31 April 1 Exchange Translated Exchange Translated Assets In Bahts (B) Rate (B/$) Accounts ($) Rate (B/S) Accounts ($) Cash B26,000,000 32.00 $812,500 42.67 $609,327 Accounts receivable 36,000,000 32.00 1,125,000 42.67 843,684 Inventory 49,000,000 32.00 1,531,250 42.67 1,148,348 Net plant and equipment 61,000,000 32.00 1,906,250 42.67 1,429,576 Total B172,000,000 $5,375,000 $4,030,935 Liabilities and Net Worth Accounts payable B20,000,000 32.00 $625,000 42.67 $468,713 Bank loans 59,000,000 32.00 1,843,750 42.67 1,382,704 Common stock 17,000,000 22.00 772,727 22.00 772,727 Retained earnings 76,000,000 35.62 (a) 2,133,523 35.62 (b) 2,133,523 Translation adjustment (CTA) ? ? Total B172,000,000 $5,375,000 $4,030,935 (a) Dollar retained earnings before depreciation are the cumulative sum of additions to retained earnings of all prior years, translated to exchange rates in each year. (b) Translated into dollars at the same rate as before depreciation of the baht. Click on the icon located on the top-right corner of the data table in order to copy its contents into a spreadsheet