Question

Atreides International has operations in Arrakis. The balance sheet for this division in Arrakeen solaris shows assets of 39,000 solaris, debt in the amount of 13,000 solaris, and equity of 26,000 solaris. Fill out balance sheet (at bottom) for each part.

a. If the current exchange ratio is 1.20 solaris per dollar, what does the balance sheet look like in dollars? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)

b. Assume that one year from now the balance sheet in solaris is exactly the same as at the beginning of the year. If the exchange rate is 1.30 solaris per dollar, what does the balance sheet look like in dollars now? (Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.) c. Assume that one year from now the balance sheet in solaris is exactly the same as at the beginning of the year. If the exchange rate is 1.14 solaris per dollar, what does the balance sheet look like in dollars now? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)

     

Balance	sheet
assets:	Debt:
	Equity:
total assets:	Total liabilities and equity:

Answer 1

Given,

Assets = 39000 solaris

Debt = 13000 solaris

Equity = 26000 solaris

Solution :-