San Diego State University Operations And Supply Chain Management Assignment Help - Common

Question - Ginvold Co. began operating a subsidiary in a foreign country on January 1, 2011 by acquiring all of
the common stock for A?§50,000. This subsidiary immediately borrowed A?§120,000 on a five-year
note with ten percent interest payable annually beginning on January 1, 2012. A building was then
purchased for A?§170,000 on January 1, 2011. This property had a ten-year anticipated life and no
salvage value and was to be depreciated using the straight-line method. The building was
immediately rented for three years to a group of local doctors for A?§6,000 per month. By year-end,
payments totaling A?§60,000 had been received. On October 1, A?§5,000 were paid for a repair
made on that date and it was the only transaction o ...Read More f this kind for the year. A cash dividend of
A?§6,000 was transferred back to Ginvold on December 31, 2011. The functional currency for the
subsidiary was the stickle. Currency exchange rates were as follows:

January 1, 2011 - A?§1 = $2.40
October 1, 2011 - A?§1 = $2.22
December 31, 2011 - A?§1 = $2.28
Average for 2011 - A?§1 = $2.16

1. Prepare an income statement for this subsidiary in stickles and then translate these amounts to
U.S. dollars.

2. Prepare a statement of retained earnings for this subsidiary in stickles and then translate these
amounts into U.S. dollars.

3. Prepare a balance sheet for this subsidiary in stickles and then translate these amounts into U.S.
dollars.

4. Prepare a statement of cash flows for this subsidiary in stickles and then translate these amounts
into U.S. dollars ...Read Less

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