On January 1, 2019, Parker, Inc., a U.S.-based firm, formed a wholly owned subsidiary Suffolk...
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Accounting
On January 1, 2019, Parker, Inc., a U.S.-based firm, formed a wholly owned subsidiary Suffolk PLC located in Great Britain. Relevant exchange rates are listed below:
Suffolks functional currency is British pound (GBP). Suppose sales are made evenly throughout the year. As of January 1, 2020, the retained earnings balance was translated as $10,560. Dividends are declared on Jan 30, 2020. Credit balances are indicated by parentheses.
GBP
USD
Income Statement
Sales
(28,000)
?
Cost of Goods Sold
16,000
Depreciation expense
2,000
?
Other expenses
6,000
Net income
(4,000)
Statement of Retained Earnings
Retained earnings, 1/1/2020
(8,000)
Net income
(4,000)
?
Dividends paid
1,750
?
Retained earnings, 12/31/2020
(10,250)
?
Balance Sheet
Cash
1,500
Accounts receivable
5,200
Inventory
18,000
?
Equipment (net)
36,000
?
Total assets
60,700
?
Accounts Payable
(1,450)
Long-term debt
(5,000)
Common stock
(44,000)
?
Retained earnings, 12/31/2020
(10,250)
Cumulative translation adjustment
?
Total liabilities and equity
(60,700)
What are translated Sales in U.S. dollars?
Use the same information in Question. What is translated Depreciation expense in U.S. dollars?
Use the same information in Question. What is translated Net income in U.S. dollars?
Use the same information in Question. What are translated Dividends paid in U.S. dollars?
Use the same information in Question. What are translated Retained earnings (as of 12/31/2020) in U.S. dollars?
Use the same information in Question. What is translated Inventory in U.S. dollars?
Use the same information in Question What is equipment (net) U.S. dollars?
Use the same information in Question. What are translated Total assets in U.S. dollars?
Use the same information in Question. What is translated Common stock in U.S. dollars?
Use the same information in Question . What is Cumulative translation adjustment (as of 12/31/2020)?
With the given information please answer ques 1-10. asap, thank you!
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