Scribd
Upload
16 views2 pages

Translation Adjustment

The income statement shows the company earned net income of £59,200 for the period. The retained earnings statement shows £59,200 of net income was added to retained earnings, while £11,000 of dividends were paid, leaving retained earnings of £48,200. The balance sheet shows total assets of £283,000 including £220,000 for the building and £68,200 in cash. Total liabilities include a £148,000 note payable and £14,800 in interest payable. Equity includes £72,000 in contributed capital and £48,200 in retained earnings.

Uploaded by

laale dijaan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
16 views2 pages

Translation Adjustment

The income statement shows the company earned net income of £59,200 for the period. The retained earnings statement shows £59,200 of net income was added to retained earnings, while £11,000 of dividends were paid, leaving retained earnings of £48,200. The balance sheet shows total assets of £283,000 including £220,000 for the building and £68,200 in cash. Total liabilities include a £148,000 note payable and £14,800 in interest payable. Equity includes £72,000 in contributed capital and £48,200 in retained earnings.

Uploaded by

laale dijaan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 2

Income Statement

pounds exchange rate US Dollars


rent revenue 100,800 2.34 $ 235,872
interest expense -14,800 2.34 $ (34,632)
depreciation expense -22,000 2.34 $ (51,480)
repair expense -4,800 2.35 $ (11,280)
Net Income 59,200 $ 138,480

Retained earnings
pounds exchange rate US Dollars
Retained earnings 1/1 0 $ -
Net income 59,200 i/s $ 138,480
Dividends -11000 2.38 $ (26,180)
Retained earnings 12/31 48200 $ 112,300

Balance sheet
pounds exchange rate US Dollars
Cash 68200 $ 2.38 $ 162,316
72000+148000-220000+84000-4800-11000
Accounts receivable 16800 $ 2.38 $ 39,984
Building 220000 $ 2.38 $ 523,600
Accumulated depreciation -22,000 $ 2.38 $ (52,360)
Total assets 283000 $ 673,540
Interest payable 14,800 $ 2.38 $ 35,224
note payable 148000 $ 2.38 $ 352,240
contributed capital 72000 $ 2.30 $ 165,600
retained earnings 48200 $ 112,300
Subtotal 283,000 From Above 665,364
translation adjustment $ 8,176.00
total liabilities and equity 283,000 673,540

Translation Adjustment
pounds exchange rate US Dollars
Beginning net assets 0 $ 2.30 $ -
increase in net assets
contributed capital 72000 $ 2.30 $ 165,600
net income 59,200 from i/s $ 138,480
decrase in net assets:
dividends declared -11000 from r/e $ (26,180)
ending net assets 120200 $ 277,900
ending net assets at exchange rate 120200 $ 2.38 $ 286,076
Translation Adjustment $ (8,176)
Cash Flow statement
pounds exchange rate US Dollars
Operating activities
net income 59,200 $ 138,480.00
add:depreciation expense 22,000 $ 2.34 $ 51,480.00
less:increase in accounts receivable -16800 $ 2.34 $ (39,312.00)
add:increase in interest payab;e 14,800 $ 2.34 $ 34,632.00

cash flow from operating activities 79,200 $ 185,280.00


investing activities
purchase of building -220000 $ 2.30 $ (506,000.00)
cash flow from investing activities -220000 $ (506,000.00)
financing activities
capital contribution 72000 $ 2.30 $ 165,600.00
borrowing on note 148000 $ 2.30 $ 340,400.00
dividend -11000 $ 2.38 $ (26,180.00)

cash flow from financing activities 209000 $ 479,820.00


increase in cash 68,200 $ 159,100
effect of exchange rate on cash $ 3,216
beginning cash balance
ending cash balance 68,200 $ 162,316

You might also like