4. value 25.00 points Problem 31-17 Translation Exposure Atreides International
ID: 2805120 • Letter: 4
Question
4. value 25.00 points Problem 31-17 Translation Exposure Atreides International has operations in Arrakis. The balance sheet for this division in Arrakeen solaris hs an enc e det e amtaunt of 19 00 solais and equity of 23,00 olais Assume the equity increases by 2,100 solaris due to retained earmings What will the balance sheet look like in Arrakeen solaris? (Do not round intermediate calculations and round your final answers to 2 decimal places. (e.g. 32.16) Balance sheet in solaris Debt Equity Total liabilities and equity Assets Total assets If the exchange rate at the end of the year is 156 solaris per dollar. what does the balance sheet look like? (Do not round intermediate calculations and round your final answers to 2 decimal places. (e.g. 32.16) Balance sheet Assets Debt Equity Total assets Total liablities and equityExplanation / Answer
Balance sheet in term of Solaris is mention below:
Assets
Amount
Liability & equity
Amount
Assets
42,000
Equity
23,000
Debt
19,000
Total Assets
42,000
Total Liability & equity
42,000
Value of equity increase by 2,100 So new value of equity is 25,100. Total liability and equity become 44,100 and value of total assets become 25,500
Balance sheet in term of Solaris after increase in equity value is mention below:
Assets
Amount
Liability & equity
Amount
Assets
44,100
Equity
25,100
Debt
19,000
Total Assets
44,100
Total Liability & equity
44,100
Now Exchange rate = 1.56 Solaris per dollar
Value of assets in term of dollar = 44,100 / 1.56
= $28,269.23
Value of Equity in term of dollar = 25,100 / 1.56
= $16,089.74
Value of debt in term of dollar = 19,000 / 1.56
= $12,179.49
Balance sheet in term of dollar is mention below:
Assets
Amount
Liability & equity
Amount
Assets
$28,269.23
Equity
$16,089.74
Debt
$12,179.49
Total Assets
$28,269.23
Total Liability & equity
$28,269.23
Assets
Amount
Liability & equity
Amount
Assets
42,000
Equity
23,000
Debt
19,000
Total Assets
42,000
Total Liability & equity
42,000
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.