Reference no: EM132835233

Question 1. From the trial balance information provided in the table, prepare a balance sheet and an income statement in their respective functional currencies for each of the foreign operations. This breakdown will ultimately be used to help prepare certain portions of some of the forms you will be preparing. This specific Phase 1 assignment does not require translation of the balance sheets and income statements into USD, although you might want to go ahead and set up your excel schedules in preparation for doing so, i.e., set up a column for functional currency and another for USD. Translation into USD will be due April 1, 2021.

Question 2. List the respective functional currencies for Cat, Katze and CSRL.

Question 3. List the fx rates that will be required to translate these respective functional currencies into USD for the activities reflected in the table, and indicate the source of your numbers. e.g., at what specific fx rate will the balance sheet for Cat be translated and what source did you use to determine this rate? Keep in mind that at a minimum, balance sheet and income statement information will need to be translated. (For purposes of this project, assume there are no special rules for inventory, depreciable assets, COGS or depreciation expense.) In class on March 25, we will compare the rates and sources as determined by each team and agree upon which ones to use for the project.