Betancourt International has operations in Arrakis. The balance sheet for this d
ID: 2798690 • Letter: B
Question
Betancourt International has operations in Arrakis. The balance sheet for this division in Arrakeen solaris shows assets of 34,000 solaris, debt in the amount of 13,000 solaris, and equity of 21,000 solaris.
a. If the current exchange ratio is 1.44 solaris per dollar, what does the balance sheet look like in dollars? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
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 1.59 solaris per dollar, what does the balance sheet look like in dollars now? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
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 1.29 solaris per dollar, what does the balance sheet look like in dollars now? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
Explanation / Answer
Balance sheet
Asset
$ 23,611.11
Debt
9027.78
Equity
14583.3
Total asset
$ 23,611.11
Total liability & equity
23611.11
Balance sheet
Asset
$ 23,611.11
Debt
9027.78
Equity
14583.3
Total asset
$ 23,611.11
Total liability & equity
23611.11
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