Atreides International has operations in Arrakis. The balance sheet for this div

Question

Atreides International has operations in Arrakis. The balance sheet for this division in Arrakeen solaris shows assets of 23,000 solaris, debt in the amount of 12,000 solaris, and equity of 11,000 solaris a. If the current exchange ratio is 1.15 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 Debt Equity Assets Total assets Total liabilities and 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 1.25 solaris per dollar, what does the balance sheet look like in dollars now? Balance sheet Assets Debt Equity Total assets Total liabilities and 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 1.09 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 Debt Equity Assets Total assets Total liabilities and equity

Explanation / Answer

a. 1$ = 1.15 Solaris

means 1 Solaris = 1/1.15$ = 0.87$

Balance Sheet

b. 1$ = 1.25 Solaris

means 1 Solaris = 1/1.25$ = 0.80$

Balance Sheet

c. 1$ = 1.09 Solaris

means 1 Solaris = 1/1.09$ = 0.92$

Balance Sheet

Assets Amount in Solaris Amount in dollars Liabilities Amount in Solaris Amount in dollars Assets 23000 23000*0.87 = 20000 Debt 12000 12000*0.87 = 10434.78 Equity 11000 11000*0.87 = 9565.22 Total 20000 20000

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