To get this value, we need to finish remeasuring our balance sheet at the appropriate rates. The retained earnings figure will be what makes the balance sheet balance.
|
Scud Co. Int'l
Balance Sheet (in SF thousands) |
|
Dec. 31, 2008 |
Remeasured $ |
| Cash & A/R |
600 × 0.85 = |
10 |
| Inventory |
500 × 0.77 = |
385 |
| Net Fixed Assets |
600 × 0.77 = |
462 |
| Total Assets |
1,700 |
1,357 |
|
| A/P |
200 × 0.85 = |
170 |
| Long-term debt |
100 × 0.85 = |
85 |
| Common Stock |
1,300 × 0.77 = |
1001 |
| Retained Earnings |
100 |
101 |
| Total Liabilities and Owner's Equity |
1,700 |
1,357 |
|
