Solution-What is cairo ingot contribution to the

What is cairo ingot contribution to the translation exposure

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Reference no: EM133111398

Question - Cairo Ingot, Ltd., is the Egyptian subsidiary of TransMediterranean Aluminum, a British multinational that fashions automobile engine blocks from aluminum. Trans-Mediterranean's home reporting currency is the British pound. Cairo Ingot's December 31st balance sheet is shown below. At the date of this balance sheet the exchange rate between Egyptian pounds and British pounds sterling was £E5.36/UK£.

Balance Sheet of Cairo Ingot, Ltd.
	Egyptian pounds
Assets	Statement
Cash	16,500,000
Accounts receivable	33,000,000
Inventory	49,500,000
Net plant & equipment	66,000,000
Total	165,000,000

Liabilities & Net Worth
Accounts payable	24,750,000
Long-term debt	49,500,000
Invested capital	90,750,000
CTA account (loss)	-
Total	165,000,000

Required - What is Cairo Ingot's contribution to the translation exposure of Trans-Mediterranean on December 31st, using the current rate method?

Reference no: EM133111398

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What is cairo ingot contribution to the translation exposure

Reference no: EM133111398

Reference no: EM133111398

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