Arabian Inc. is domiciled in Sharjah, owns Arabian Canadian, SA, a subsidiary in Canada, which was established in Januar

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Arabian Inc Is Domiciled In Sharjah Owns Arabian Canadian Sa A Subsidiary In Canada Which Was Established In Januar 1 (48.68 KiB) Viewed 29 times

Arabian Inc. is domiciled in Sharjah, owns Arabian Canadian, SA, a subsidiary in Canada, which was established in January 1, 2020. Using the current rate method, translate (convert the below Arabian Canadian's Financial statements (Income statement and Statement of Financial Position) to the currency of the parent company as of December 31, 2020. Assuming that (1) there was no beginning inventory (2) inventory was carried at cost and acquired evenly during the last quarter of 2020, 131 purchases were made evenly throughout year, (4) fwed assets were acquired on January 1, 2020, and (S) capital stock was sold on January 1, 2020 Relevant Exchange rates (UAE Dirham per Canadian Dollar January 1, 2020 3 Dirham Averape for 2020 2.75 Dirham Average for ath quarter 2020 2.65 Dirham December 31, 2020 2.5 Dirham Arabian Canadian's Statement of Financial Position items as of December 31, 2020, in Canadian Dollar Cash 1,000 Accounts payabl 2,000 e Accounts Receivable 2,000 Long term debt 6,000 Inventory 2,500 Capital stock 3,000 Fored assets 8,000 Retained earnings 1,500 Accumulated depreciation 1,000 Arabian Canadian's Income Statement items as of December 31, 2020, in Canadian Dollar: Sales 20,000 Depreciation Expense 1,000 Cost of Goods Sold 14,000 Interest Expense 500 Other Expenses 2,500 Income tax exp. 500