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Betancourt International has operations in Arrakis. The balance sheet for this d

ID: 2455227 • Letter: B

Question

Betancourt International has operations in Arrakis. The balance sheet for this division in Arrakeen solaris shows assets of 33,000 solaris, debt in the amount of 12,500 solaris, and equity of 20,500 solaris. (Enter your answer as directed, but do not round intermediate calculations.)

Required:

(a)

If the current exchange ratio is 1.43 solaris per dollar, what does the balance sheet look like in dollars? (Round your answers to 2 decimal places (e.g., 32.16).)

Balance Sheet

Assets

Liabilities

  Debt

$

  Equity

  Assets

$

  Total liabilities & equity

$

(b)

Assume that one year from now the balance sheet in solaris is exactly the same as at the beginning of the year. If the exchange rate is 1.58 solaris per dollar, what does the balance sheet look like in dollars now? (Round your answers to 2 decimal places (e.g., 32.16).)

Balance Sheet

Assets

Liabilities

  Debt

$

  Equity

  Assets

$

Total liabilities & equity

$

(c)

Assume that one year from now the balance sheet in solaris is exactly the same as at the beginning of the year. If the exchange rate is 1.28 solaris per dollar, what does the balance sheet look like in dollars now? (Round your answers to 2 decimal places (e.g., 32.16).)

Balance Sheet

Assets

Liabilities

  Debt

$

  Equity

  Assets

$

  Total liabilities & equity

$

Betancourt International has operations in Arrakis. The balance sheet for this division in Arrakeen solaris shows assets of 33,000 solaris, debt in the amount of 12,500 solaris, and equity of 20,500 solaris. (Enter your answer as directed, but do not round intermediate calculations.)

Explanation / Answer

(a) Preparation of balance sheet at the exchange rate 1.43 solaris per dollar.We have,

(b) Preparation of balance sheet at the exchange rate 1.58 solaris per dollar.We have,

(c) Preparation of balance sheet at the exchange rate 1.28 solaris per dollar.We have,

Balance Sheet Assets $ Liabilities $ Debt 12,500 / 1.43 $ 8,741.26 Equity 20,500/1.43 $ 14,335.66 Assets 33,000/1.43 $ 23,076.92 Total liabilities & equity $ 23,076.92
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