Using the TEMPORAL METHOD..

Problem 2. Chapter N worth 20 points.) Great Dalls of Fire (GBP) Man of company acturing is a British subsidiary JK, Inc., a US Require Using the Temporal Method, translate GBF's Balance sheet and Statement of Income and Retained Earnings into US Dollars. Relevant exchange rates, Rates in effect when capital stock was issued, the long-term notes payable were issued, and fixed assets were acquired December 31, 20x0. s per 1.85 Average for 20x December 31, 20x1 1.48 1.53 Rate for December 31, 2000 inventory 1.56 Rate for December 31, 2001 inventory......................... Dividend rate, June 30, 20x1 1.45 Assume that taxes were paid evenly throughout the year 1.55 Retained Earnings, December 31, 20x0 (temporal method). S12.300 Balance Sheet, GBF Mfg., at December 31, 20x1.Pounds Sterling (in thousands) Assets exchange s Current Assets Cash and receivables Inventory ......4,000 ...................8,500 Fixed Assets Building (cost 10,000) ....................3,000 Equipment (costE 7,000 Total 14,000 Total Assets Liabilities and Stockholders' Equity Current Liabilities .............................5 Long-term liabilities Notes Payable 3,000 Deferred Income Taxes 2,500 5,500 Stockholders' Equity Capital Stock. Retained Earnin 6,500 11,500 Total Liabilities and Stockholders' Eq 22,300