Hylie a US corporation owns 100 of Frosan a French firm Assu

Hylie, a U.S. corporation, owns 100% of Frosan, a French firm. Assume that the dollar is the functional currency, although the books are kept in euros.

Required: What currency exchange rate would be used to re-measure Frosan\'s balance sheet into U.S. dollars? Choose from current, simple average, weighted average, or historical.

a. Cash _____________________

b. Accounts Receivable _____________________

c. Inventory, carried at cost _____________________

d. Equipment _____________________

e. Accumulated Depreciation _____________________

f. Bonds Payable _____________________

g. Common Stock _____________________

h. Sales _____________________

Solution

Answer

a. Cash                                 -current

b. Accounts Receivable          -current

c. Inventory, carried at cost     -current

d. Equipment                         -historical

e. Accumulated Depreciation -historical

f. Bonds Payable                    -current

g. Common Stock                  -historical

h. Sales                                -weighted average