Donny corporation has operations in europe. The balance sheet for this division
ID: 2769323 • Letter: D
Question
Donny corporation has operations in europe. The balance sheet for this division in italian euro shows assets of 24,000 euro, debt in the amount of 8,000 euro, and equity of 16,000 euro. (Enter your answer as directed, but do not round intermediate calculations.)
If the current exchange ratio is 1.34 euro per dollar, what does the balance sheet look like in dollars?(Round your answers to 2 decimal places (e.g., 32.16).)
Assume that one year from now the balance sheet in euro is exactly the same as at the beginning of the year. If the exchange rate is 1.49 euro per dollar, what does the balance sheet look like in dollars now? (Round your answers to 2 decimal places (e.g., 32.16).)
Assume that one year from now the balance sheet in euro is exactly the same as at the beginning of the year. If the exchange rate is 1.19 euro per dollar, what does the balance sheet look like in dollars now? (Round your answers to 2 decimal places (e.g., 32.16).)
Donny corporation has operations in europe. The balance sheet for this division in italian euro shows assets of 24,000 euro, debt in the amount of 8,000 euro, and equity of 16,000 euro. (Enter your answer as directed, but do not round intermediate calculations.)
Explanation / Answer
Answer
Answer a.
Donny Corporation (Balance sheet)
Liabilities
Euro
Exchange rate
US Dollar
Assets
Euro
Exchange rate
US Dollar
Equity
16000
0.7463
11940.3
(1/1.34)
Assets
24000
0.7463
17910.45
Debt
8000
0.7463
5970.149
24000
17910.45
24000
17910.45
Answer b.
Donny Corporation (Balance sheet)
Liabilities
Euro
Exchange rate
US Dollar
Assets
Euro
Exchange rate
US Dollar
Equity
16000
0.6711
10738.26
1/1.49
Assets
24000
0.6711
16107.38
Debt
8000
0.6711
5369.128
24000
16107.38
24000
16107.38
Answer C.
Donny Corporation (Balance sheet)
Liabilities
Euro
Exchange rate
US Dollar
Assets
Euro
Exchange rate
US Dollar
Equity
16000
0.8403
13445.38
1/1.19
Assets
24000
0.8403
20168.07
Debt
8000
0.8403
6722.689
24000
20168.07
24000
20168.07
Donny Corporation (Balance sheet)
Liabilities
Euro
Exchange rate
US Dollar
Assets
Euro
Exchange rate
US Dollar
Equity
16000
0.7463
11940.3
(1/1.34)
Assets
24000
0.7463
17910.45
Debt
8000
0.7463
5970.149
24000
17910.45
24000
17910.45
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