Ajax Manufacturing's German subsidiary has the following balance sheet(in DM):
Cash, marketable securities: 250,000
Accounts receivable 1,000,000
Inventory ( at market) 2,700,000
Fixed assets: 5,100,000
Total assets DM 9,050,000
Current liabilities DM 750,000
Long-term debt 3,400,000
Total liabilities plus equity: DM 9,050,000.
Suppose the DM appreciates from $0.70 to $0.76 during the period.
Under the current rate method what is Ajax's traslation gain(loss)?© BrainMass Inc. brainmass.com October 9, 2019, 4:15 pm ad1c9bdddf
Under the current rate method what is Ajax's traslation gain(loss)?
Using the current rate method, all assets and liabilities are translated using the current rate (i.e., exchange ...
Explain currency translation methods.