Atreides International has operations in Arrakis. The balance sheet for this div
ID: 2730013 • Letter: A
Question
Atreides International has operations in Arrakis. The balance sheet for this division in Arrakeen solaris shows assets of 39,000 solaris, debt in the amount of 15,000 solaris, and equity of 24,000 solaris. a. If the current exchange ratio is 1.30 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 $ Debt $ Equity $ 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 1.50 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 1.16 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 $ Debt $ Equity $ Total assets $ Total liabilities and equity $
Explanation / Answer
Answer:a To construct the balance sheet in $, we need to convert the account balances to $.At the current exchange rate, we get:
Assets= solaris 39000 *($/solaris1.30)=$30000
Debt=solaris 15000*($/solaris1.30)=$11538.46
Equity= solaris 24000*($/solaris1.30)=$18461.54
Answer:b
Assets= solaris 39000 *($/solaris1.50)=$26000
Debt=solaris 15000*($/solaris1.50)=$15000
Equity= solaris 24000*($/solaris1.50)=$16000
Answer:c
Assets= solaris 39000 *($/solaris1.16)=$33620.69
Debt=solaris 15000*($/solaris1.16)=$129310.34
Equity= solaris 24000*($/solaris1.16)=$20689.65
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