Homework Help is Here – Start Your Trial Now!
Business
Accounting
Nexus Tech Industries' Consolidate Earning

Nexus Tech Industries' Consolidate Earning

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question
Nexus Tech Industries' Consolidate Earnings. Nexus Tech is a U.S.-based multinational manufacturing firm with wholly-owned subsidiaries in Brazil, Germany, and China, in addition to domestic operations in the United States. NexusTech is traded on the NASDAQ. NexusTech currently has 650,000 shares outstanding. The basic operating characteristics of the various business units is as follows: Nexus Tech must pay corporate income tax in each country in which it currently has operations. a. After deducting taxes in each country, what are Nexus Tech's consolidated earnings and consolidated earnings per share in U.S. dollars? b. What proportion of Nexus Tech's consolidated earnings arise from each individual country? c. What proportion of Nexus Tech's consolidated earnings arise from outside the United States?
Transcribed Image Text:Nexus Tech Industries' Consolidate Earnings. Nexus Tech is a U.S.-based multinational manufacturing firm with wholly-owned subsidiaries in Brazil, Germany, and China, in addition to domestic operations in the United States. NexusTech is traded on the NASDAQ. NexusTech currently has 650,000 shares outstanding. The basic operating characteristics of the various business units is as follows: Nexus Tech must pay corporate income tax in each country in which it currently has operations. a. After deducting taxes in each country, what are Nexus Tech's consolidated earnings and consolidated earnings per share in U.S. dollars? b. What proportion of Nexus Tech's consolidated earnings arise from each individual country? c. What proportion of Nexus Tech's consolidated earnings arise from outside the United States?
Data table (Click on the following icon in order to copy its contents into a spreadsheet.) Business Performance (000s) Earnings before taxes (EBT) Corporate income tax rate Average exchange rate for the period U.S. Parent (US$) $4,500 21% Brazilian Subsidiary (reais, R$) R$6,250 25% R$1.8 $1.00 German Subsidiary (euro, €) €4,500 40% €0.7018 $1.00 Chinese Subsidiary (yuan, Y) ¥2,500 30% ¥7.75= $1.00 = X
Transcribed Image Text:Data table (Click on the following icon in order to copy its contents into a spreadsheet.) Business Performance (000s) Earnings before taxes (EBT) Corporate income tax rate Average exchange rate for the period U.S. Parent (US$) $4,500 21% Brazilian Subsidiary (reais, R$) R$6,250 25% R$1.8 $1.00 German Subsidiary (euro, €) €4,500 40% €0.7018 $1.00 Chinese Subsidiary (yuan, Y) ¥2,500 30% ¥7.75= $1.00 = X
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS