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Atreides International has operations in Arrakis. The balance sheet for this division in Arrakeen solaris shows...

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. Assume the equity increases by 1,500 solaris due to retained earnings. What will the balance sheet look like in Arrakeen solaris?

If the exchange rate at the end of the year is 1.50 solaris per dollar, what does the balance sheet look like? (Round your answers to 2 decimal places, e.g., 32.16.)

  

Balance sheet
  Assets $   Debt $
  Equity
  Total assets $   Total liabilities and equity $
Business   Finance   
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Answer #1

Balance sheet

  Assets

$27,000.00

  Debt

$8,666.67

  Equity

$18,333.33

  Total assets

$27,000.00

  Total liabilities and equity

$27,000.00

If the equity increases by 1,500 solaris due to retained earning, then the assets will also increase to the extent of 1,500 Solaris

New Assets = 40,500 Solaris [39,000 + 1,500]

New Debt = 13,000 Solaris

New Equity = 27,500 Solaris [26,000 + 1,500]

Conversion of the Solaris Value into the Dollar Value using the exchange rate of 1.50 solaris per dollar

Assets in Dollar = $27,000 [40,500 Solaris / 1.50 solaris per dollar]

Debt in Dollar = $8,666.67 [13,000 Solaris / 1.50 solaris per dollar]

Equity in Dollar = $18,333.33 [27,500 Solaris / 1.50 solaris per dollar]

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