Prepare a second consolidated balance sheet for the MNE using the exchange rates you expect in the future. Determine how any reporting currency imbalance will affect the new consolidated balance sheet for the MNE.a) Prepare a transaction exposure report for Sundance and its affiliates. Determine if any transactions exposures are also translation exposures.b) Investigate what Sundance and its affiliates can do to control its transaction and translation exposures. Determine if any of the translation exposure should be hedged.Please provide excel formulas and screenshots Long-term debtCommon stockRetained earnings9,0005,0006,000$ 27,0007,0004.500b3,420b2,3002,900⁹1,600cTotal liabilities and net worthPs 21,620CD 10,800aThe parent firm is owed Ps1,320,000 by the Mexican affiliate. This sum is included in the parent's accounts receivable as $400,000, translated at Ps3.30/$1.00. The remainder of the parent's(Mexican affiliate's) accounts receivable (payable) is denominated in dollars (pesos).The Mexican affiliate is wholly owned by the parent firm. It is carried on the parent firm's books at $2,400,000. This represents the sum of the common stock (Ps4,500,000) and retainedearnings (Ps3,420,000) on the Mexican affiliate's books, translated at Ps3.30/$1.00.The Canadian affiliate is wholly owned by the parent firm. It is carried on the parent firm's books at $3,600,000. This represents the sum of the common stock (CD2,900,000) and theretained earnings (CD1,600,000) on the Canadian affiliate's books, translated at CD1.25/$1.00.dThe parent firm has outstanding notes payable of ¥126,000,000 due a Japanese bank. This sum is carried on the parent firm's books as $1,200,000, translated at ¥105/$1.00. Other notespayable are denominated in U.S. dollars.eThe Mexican affiliate has sold on account A120,000 of merchandise to an Argentine import house. This sum is carried on the Mexican affiliate's books as Ps396,000, translated atA1.00/Ps3.30. Other accounts receivable are denominated in Mexican pesos.The Canadian affiliate has sold on account W192,000,000 of merchandise to a Korean importer. This sum is carried on the Canadian affiliate's books as CD300,000, translated atW800/CD1.25. Other accounts receivable are denominated in Canadian dollars. Use this information for Kellman Company to answer the question that follow.The balance sheets at the end of each of the first 2 years of operations indicate the following:Kellman CompanyTotal current assetsTotal investmentsTotal property, plant, and equipmentTotal current liabilitiesTotal long-term liabilitiesPreferred 9% stock, $100 parCommon stock, $10 parPaid-in capital in excess of par-Common stockRetained earningsa. 9.01%b. 11.22%Year 2c. 4.85%d. 7.26%$600,10063,200887,300111,400311,70083,200565,30062,900416,100Year 1Using the balance sheets for Kellman Company, if net income is $112,500 and interest expense is$44,600 for Year 2, what is the return on total assets for the year (rounded to two decimalplaces)?$583,90046,500618,80087,000234,90083,200565,30062,900215,900

The return on total assets ratio is determined by dividing a company's earnings after taxes by its…

Answered: Using the balance sheets for Kellman…

Managerial Accounting: The Cornerstone of Business Decision-Making

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Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

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Problem 55E: Rebert Inc. showed the following balances for last year: Reberts net income for last year was...

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Prepare a second consolidated balance sheet for the MNE using the exchange rates you expect in the future. Determine how any reporting currency imbalance will affect the new consolidated balance sheet for the MNE.

a) Prepare a transaction exposure report for Sundance and its affiliates. Determine if any transactions exposures are also translation exposures.

b) Investigate what Sundance and its affiliates can do to control its transaction and translation exposures. Determine if any of the translation exposure should be hedged.

Please provide excel formulas and screenshots

Long-term debt
Common stock
Retained earnings
9,000
5,000
6,000
$ 27,000
7,000
4.500b
3,420b
2,300
2,900⁹
1,600c
Total liabilities and net worth
Ps 21,620
CD 10,800
aThe parent firm is owed Ps1,320,000 by the Mexican affiliate. This sum is included in the parent's accounts receivable as $400,000, translated at Ps3.30/$1.00. The remainder of the parent's
(Mexican affiliate's) accounts receivable (payable) is denominated in dollars (pesos).
The Mexican affiliate is wholly owned by the parent firm. It is carried on the parent firm's books at $2,400,000. This represents the sum of the common stock (Ps4,500,000) and retained
earnings (Ps3,420,000) on the Mexican affiliate's books, translated at Ps3.30/$1.00.
The Canadian affiliate is wholly owned by the parent firm. It is carried on the parent firm's books at $3,600,000. This represents the sum of the common stock (CD2,900,000) and the
retained earnings (CD1,600,000) on the Canadian affiliate's books, translated at CD1.25/$1.00.
dThe parent firm has outstanding notes payable of ¥126,000,000 due a Japanese bank. This sum is carried on the parent firm's books as $1,200,000, translated at ¥105/$1.00. Other notes
payable are denominated in U.S. dollars.
eThe Mexican affiliate has sold on account A120,000 of merchandise to an Argentine import house. This sum is carried on the Mexican affiliate's books as Ps396,000, translated at
A1.00/Ps3.30. Other accounts receivable are denominated in Mexican pesos.
The Canadian affiliate has sold on account W192,000,000 of merchandise to a Korean importer. This sum is carried on the Canadian affiliate's books as CD300,000, translated at
W800/CD1.25. Other accounts receivable are denominated in Canadian dollars.

Use this information for Kellman Company to answer the question that follow.
The balance sheets at the end of each of the first 2 years of operations indicate the following:
Kellman Company
Total current assets
Total investments
Total property, plant, and equipment
Total current liabilities
Total long-term liabilities
Preferred 9% stock, $100 par
Common stock, $10 par
Paid-in capital in excess of par-Common stock
Retained earnings
a. 9.01%
b. 11.22%
Year 2
c. 4.85%
d. 7.26%
$600,100
63,200
887,300
111,400
311,700
83,200
565,300
62,900
416,100
Year 1
Using the balance sheets for Kellman Company, if net income is $112,500 and interest expense is
$44,600 for Year 2, what is the return on total assets for the year (rounded to two decimal
places)?
$583,900
46,500
618,800
87,000
234,900
83,200
565,300
62,900
215,900

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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Using the balance sheets for Kellman Company, if net income is $112,500 and interest expense is $44,600 for Year 2, what is the return on total assets for the year (rounded to two decimal places)? a. 9.01% b. 11.22% c. 4.85% d. 7.26%