Purchase Solution

Express Travel Foreign currency conversions

Not what you're looking for?

Ask Custom Question

See attached file.

Express Travel owns a travel agency that operates in London. The account balances in pounds for the subsidiary are in the attachment.

The subsidiary did not make any purchases of office supplies or plant assets during the year. Revenues were earned and operating expenses, other than depreciation and supplies used, were incurred evenly throughout the year.

a. prepare a schedule to compute the translations adjustment for the year, assuming foreign entity's functional currency is the pound.
b. prepare a schedule compute the translation gain or loss, assuming the foreign entity's functional currency is the US dollar.
c. explain why the results differ under the two methods.

Attachments
Purchase this Solution
Solution Summary

This solution provides a detailed step by step explanation of the given finance problem, which is calculated in Excel.

Purchase this Solution
Free BrainMass Quizzes
Change and Resistance within Organizations

This quiz intended to help students understand change and resistance in organizations

Income Streams

In our ever changing world, developing secondary income streams is becoming more important. This quiz provides a brief overview of income sources.

Introduction to Finance

This quiz test introductory finance topics.

Organizational Behavior (OB)

The organizational behavior (OB) quiz will help you better understand organizational behavior through the lens of managers including workforce diversity.

Operations Management

This quiz tests a student's knowledge about Operations Management

View More Free Quizzes
Related BrainMass Solutions

  • Converstion of five international currencies into dollar

    Identify the value of a foreign currency against one (1) US dollar. 2. Multiply the amount asked with the currency value.

  • exchange rates determination

    With lower US dollar, you have to pay more for buying foreign currency. Although some countries accepted US dollar and you don't have to buy local currency to travel there, still with cheaper value of dollar you need to pay more.

  • Interest rate parity with Japan for forward exchange rate

    Exchange rates Direct Quotation: Indirect Quotation: US Dollars Required to Buy - # of Units of Foreign One Unit of Foreign Currency Currency per U. S.

  • foreign exchange market

    As we know, every nation has its own currency and monetary system. The FOREX makes it possible for U.S. citizens to travel to foreign nations and by goods and services in forms acceptable to foreigners (Cross, 1998).

  • Data Structures and Algorithms of Foreign Currency

    225069 Data Structures and Algorithms of Foreign Currency This must consists of a currency conversion application. This application?similar to simple, practical programs on many travel or financial Web sites?includes the following elements: ?

  • Currency Conversion Application

    types, input the amount of a foreign currency, and then convert the foreign currency to dollars.

  • What are some of the methods used to hedge against currency

    Most international companies use some form of transaction exposure to protect against foreign currency fluctuations.

  • Currency Conversion Application Development

    application is a menu-driven program that allows users to select one of five international currency types, input the amount of a foreign currency, and then convert the foreign currency to dollars.

  • Diminishing Risk and Operating in Foreign Countries

    The major risks that a company needs to mitigate in a foreign country are foreign currency exchange (i.e. that the company will realize a loss by translating profits denominated in a foreign currency into its home country currency), economic (that the

View More Related Solutions