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    currency translation methods

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    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
    Equity 4,900,000
    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)?

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    https://brainmass.com/economics/exchange-rates/currency-translation-methods-27039

    Solution Preview

    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 ...

    Solution Summary

    Explain currency translation methods.

    $2.19