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

Question

Betancourt International has operations in Arrakis. The balance sheet for this division in Arrakeen solaris shows assets of 28,000 solaris, debt in the amount of 10,000 solaris, and equity of 18,000 solaris. Assume the equity increases by 1,900 solaris due to retained earnings.

Required:

If the exchange rate at the end of the year is 1.32 solaris per dollar, what does the balance sheet look like? (Enter your answer as directed, but do not round intermediate calculations. Round your answers to 2 decimal places (e.g., 32.16).)

Balance Sheet (dollars)

Assets

Liabilities

  Debt

$

  Equity

  

  Assets

$

  Total debt & equity

$

  

Betancourt International has operations in Arrakis. The balance sheet for this division in Arrakeen solaris shows assets of 28,000 solaris, debt in the amount of 10,000 solaris, and equity of 18,000 solaris. Assume the equity increases by 1,900 solaris due to retained earnings.

Explanation / Answer

Exchange rate : 1$ = 1.32 Solaris

Balance Sheet in Dollars

Assets Amount $ Liabilities Amount $ Assets(28000*32) 896000 Debt(10000*32) 320000 Equity Share Capital(16100*32) 515200 Retained Earnings(1900*32) 60800 Total Assets 896000 Total Debt and Equity 896000

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