Assignment: Palmerston Company
Issues
1a. What is the translation of the foreign subsidiary's financial statements into U.S. dollars at December 31, Year 1? Show your computations.
1b. What is (are) the translation adjustment(s)?
2a. What is the remeasurement of the foreign subsidiary's financial statements into U.S. dollars assuming that the U.S. dollar is the subsidiary's functional currency?
Show your computations.
2b. What is (are) the remeasurement gain(s)/loss(es)?
3a. What are differences in the computations of the ratios: liquidity (current & quick); activity (accounts receivable turnover & inventory turnover); solvency (debt-to-equity & times-interest-earned); & profitably (gross profit margin, return on sales, return on total assets & return on stockholders' equity)?
Show your computations.
3b. How would the differences you have noted affect your decision to extend short-term credit, extend long-term credit and recommend purchasing or selling the parent company's stock?
Format your assignment according to the following formatting requirements:
1. The answer should be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides.
2. The response also includes a cover page containing the title of the assignment, the student's name, the course title, and the date. The cover page is not included in the required page length.
3. Also include a reference page. The Citations and references should follow APA format. The reference page is not included in the required page length.
Attachment:- Case-1.rar