Pinoy Company operates in a hyperinflationary economy. Its balance sheet (in baht) at December 31, 2016, follows: Property, Plant and equipment 900 Inventory 2,700 Cash 350 Share capital 400 Retained earnings 2,350 Noncurrent liabilities 500 Current liabilities 700 The December 31 general price index had moved in this way: 2012 100 2013 130 2014 150 2015 240 2016 300 The property, plant and equipment was purchased on December, 31, 2014 and there is a six months inventory held. The noncurrent liabilities were a loan raised on March 31, 2016. Determine the Retained Earnings on December 31, 2016: ('000)
Pinoy Company operates in a hyperinflationary economy. Its balance sheet (in baht) at December 31, 2016, follows: Property, Plant and equipment 900 Inventory 2,700 Cash 350 Share capital 400 Retained earnings 2,350 Noncurrent liabilities 500 Current liabilities 700 The December 31 general price index had moved in this way: 2012 100 2013 130 2014 150 2015 240 2016 300 The property, plant and equipment was purchased on December, 31, 2014 and there is a six months inventory held. The noncurrent liabilities were a loan raised on March 31, 2016. Determine the Retained Earnings on December 31, 2016: ('000)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Pinoy Company operates in a hyperinflationary economy. Its balance sheet (in baht) at December 31, 2016, follows:
Property, Plant and equipment
900
Inventory
2,700
Cash
350
Share capital
400
Retained earnings
2,350
Noncurrent liabilities
500
Current liabilities
700
The December 31 general price index had moved in this way:
2012
100
2013
130
2014
150
2015
240
2016
300
The property, plant and equipment was purchased on December, 31, 2014 and there is a six months inventory held. The noncurrent liabilities were a loan raised on
March 31, 2016.
Determine the Retained Earnings on December 31, 2016: ('000)
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