The Answer is Option D
Translation Loss , if EUR / USD Exchange Rate decreases.
In Exchange Translation is always consists of either Gain or Loss due to changes in cross currency ratios. Hence in case of increases in EUR / USD Exchange Rate will results greater values in Euros and vice versa.
Translation Loss or Gains are refected in the Financial Statements during periods ending in Quearter and year. Both the Operational gains and losses and Balance sheet items are translated during periods ending in Quearter and year.
15. Translation temporal Please refer to Table 4 in the datafile. If Euro Trade applies the...
15. Translation temporal Please refer to Table 4 in the datafile. If EuroTrade applies the temporal method of translation, then it will make a translation if the EUR/USD exchange rate - (Note: gain=equity increases, loss=equity decreases) a) impossible to determine b) loss; increases gain; decreases d) loss; decreases Euro Trade Americas is a US subsidiary of a Dutch company. The subsidiary uses USD as functional currency and its balance sheet has to be translated into EUR every quarter. Assets Cash...
14. Translation current rate Please refer to Table 4 in the datafile. If Euro Trade applies the current rate method of translation, then it will make a translation if the EUR/USD exchange rate .. (Note: gain=equity increases, loss=equity decreases) a) gain; increases b) impossible to determine c) loss; increases d) loss; decreases Euro Trade America is a US subsidiary of a Dutch company The subsidiary uses USD as functional currency and its balance sheet has to be translated into EUR...
14. Translation current rate Please refer to Table 4 in the datafile. If Euro Trade applies the current rate method of translation, then it will make a translation if the EUR/USD exchange rate _. (Note: gain=equity increases, loss=equity decreases) a) gain; increases b) impossible to determine c) loss; increases d) loss; decreases EuroTrade Americas is a US subsidiary of a Dutch company The subsidiary uses USD as functional currency and its balance sheet has to be translated into EUR every...
sorr5 now its correct
21. Currency options Please refer to Table 3 in the datafile. Suppose Ganado has a receivable of 1mln EUR due in 3 months. If the EUR/USD spot rate increases to 1.1830/1.1836 (bid/ask) over this period, how many USD will the company receive if the transaction exposure was hedged with currency options? (Note: use the spot bid when calculating the cost of a put option and the spot ask for the call option) a) 1 169 404...
QUESTION 15 For the following question, please refer to the attached spreadsheet. This sheet contains income statements and balance sheets for McDonald's and Yum! Brands (Yuml owns fast food chains KFC, Taco Bell, and Pizza Hut). These financial statements are actual statements taken from the U.S. Securities and Exchange Commission's database--for those of you who have only seen financial data presented in a textbook, it may take a couple minutes getting used to the format. Which company provides a more...
Question: 1. An economic advantage of a business combination includes Acquiring duplicative assets Creating redundant management teams Coordinating marketing campaigns Duplicating integrative marketing chains QUESTION 2 The consolidation process is performed each year since the entries are recorded in the journal and ledger only by the parent company each year since the entries are recorded in the journal and ledger only by the subsidiary company each year since the entries are recorded in the journal and ledger by both the...
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3 Graded at 100 points NOTE: AFTER you fill out the increases or decreases in column "M" to the right Deduct 1 point out of 60 4 PRINT out a copy of A1 through M27 (already formatted for printing) Enter your answer in the "yellow" squares 5 to use with the calculations BELOW. Enter a reduction as a minus 6 The Nexton Company The Nexton Company 7 Income Statement Comparative Balance Sheets Increase 8...
CASE 1-5 Financial Statement Ratio Computation Refer to Campbell Soup Company's financial Campbell Soup statements in Appendix A. Required: Compute the following ratios for Year 11. Liquidity ratios: Asset utilization ratios:* a. Current ratio n. Cash turnover b. Acid-test ratio 0. Accounts receivable turnover c. Days to sell inventory p. Inventory turnover d. Collection period 4. Working capital turnover Capital structure and solvency ratios: 1. Fixed assets turnover e. Total debt to total equity s. Total assets turnover f. Long-term...
Accounting for Business Decisions – Starbucks
You are to submit an individual one to two-page report answering
the following from an accounting perspective, not a
marketing/management perspective:
You are required to:
1. Of all the risks (risks are listed at the bottom) that
Starbuck’s management discloses, which one do you think could most
adversely affect the Balance Sheet and Income Statement at the
store level and why? Demonstrate your understanding by showing an
effect one on at least one of...