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Give answer from reference with explanation 11. Which of the following best describes the effect on Nakamoto's 2021 earnings when stated in U.S. dollars? a. Earnings will be lower because the average value of the yen depreciated during 2021. b. Earnings will be higher because the U.S. dollar appreciated during 2021. c. Earnings will be lower because the average value of the yen appreciated during 2021. 12. Compute Nakamoto's retained earnings in U.S. dollars as of December 31, 2021. a. $1,000,000. b. $1,110,000. c. $1,225,000. 13. Compute the cumulative translation adjustment as of December 31, 2021. a. ($480,000) b. - 0 - c. $480,000 14. For the year ended December 31, 2021, which of the following ratios would be unaffected by changing the functional currency to the U.S. dollar? a. Inventory turnover. b. Accounts receivable turnover. c. Current ratio.

Give answer from reference with explanation 11. Which of the following best describes the effect on Nakamoto's 2021 earnings when stated in U.S. dollars? a. Earnings will be lower because the average value of the yen depreciated during 2021. b. Earnings will be higher because the U.S. dollar appreciated during 2021. c. Earnings will be lower because the average value of the yen appreciated during 2021. 12. Compute Nakamoto's retained earnings in U.S. dollars as of December 31, 2021. a. $1,000,000. b. $1,110,000. c. $1,225,000. 13. Compute the cumulative translation adjustment as of December 31, 2021. a. ($480,000) b. - 0 - c. $480,000 14. For the year ended December 31, 2021, which of the following ratios would be unaffected by changing the functional currency to the U.S. dollar? a. Inventory turnover. b. Accounts receivable turnover. c. Current ratio.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Give answer from reference with explanation 

11. Which of the following best describes the effect on Nakamoto's 2021 earnings when stated in U.S. dollars?
a. Earnings will be lower because the average value of the yen depreciated during 2021.
b. Earnings will be higher because the U.S. dollar appreciated during 2021.
c. Earnings will be lower because the average value of the yen appreciated during 2021.

12. Compute Nakamoto's retained earnings in U.S. dollars as of December 31, 2021.
a. $1,000,000.
b. $1,110,000.
c. $1,225,000.

13. Compute the cumulative translation adjustment as of December 31, 2021.
a. ($480,000)
b. - 0 -
c. $480,000

14. For the year ended December 31, 2021, which of the following ratios would be unaffected by changing the functional currency to the U.S. dollar?
a. Inventory turnover.
b. Accounts receivable turnover.
c. Current ratio.

Nakamoto's 2021 financial statements were as follows: Statement of Income and Retained Earnings Sales Nakamoto Corp. Financial Statements for Year Ended December 31, 2021 (in thousands of yen) Expenses Cost of sales Depreciation Selling, general, and administrative Total expenses Income before taxes Income taxes Net income Retained earnings Dec. 31, 2020 Dividends Retained earnings Dec. 31, 2021 Balance Sheet Assets Nakamoto Corp. Financial Statements continued (in thousands of yen) Cash and receivables Inventory Land Fixed assets Total assets Liabilities and stockholders' equity Liabilities Capital stock Retained earnings* Total liabilities and stockholders' equity *Retained earnings on Dec. 31, 2020, were U.S.$1 million 350,000 140,000 63,000 38,500 241,500 108,500 49,000 59,500 125,000 184,500 29,000 155,500 30,000 90,000 100,000 173,000 393,000 150,000 87,500 155,500 393,000
Transcribed Image Text:Nakamoto's 2021 financial statements were as follows: Statement of Income and Retained Earnings Sales Nakamoto Corp. Financial Statements for Year Ended December 31, 2021 (in thousands of yen) Expenses Cost of sales Depreciation Selling, general, and administrative Total expenses Income before taxes Income taxes Net income Retained earnings Dec. 31, 2020 Dividends Retained earnings Dec. 31, 2021 Balance Sheet Assets Nakamoto Corp. Financial Statements continued (in thousands of yen) Cash and receivables Inventory Land Fixed assets Total assets Liabilities and stockholders' equity Liabilities Capital stock Retained earnings* Total liabilities and stockholders' equity *Retained earnings on Dec. 31, 2020, were U.S.$1 million 350,000 140,000 63,000 38,500 241,500 108,500 49,000 59,500 125,000 184,500 29,000 155,500 30,000 90,000 100,000 173,000 393,000 150,000 87,500 155,500 393,000
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