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2018 DU30 Financials & Peso Conversion

PILIPINAS Enterprises has a wholly-owned subsidiary called DU30 Company in Duterteland. DU30 was acquired on January 1, 2018 and submitted its 2018 financial statements to PILIPINAS. The financial statements include an income statement, retained earnings statement, and statement of financial position for DU30 in Duterteland's local currency of ROD. Selected average exchange rates between the ROD and Philippine peso for 2018 are also provided.

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166 views1 page

2018 DU30 Financials & Peso Conversion

PILIPINAS Enterprises has a wholly-owned subsidiary called DU30 Company in Duterteland. DU30 was acquired on January 1, 2018 and submitted its 2018 financial statements to PILIPINAS. The financial statements include an income statement, retained earnings statement, and statement of financial position for DU30 in Duterteland's local currency of ROD. Selected average exchange rates between the ROD and Philippine peso for 2018 are also provided.

Uploaded by

Jon Dumagil Inocentes, CPA
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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PILIPINAS ENTERPRISES whose functional currency is the Philippine peso has a single wholly-owned in

DUterteland whose local currency is ROD. The subsidiary, DU30 Company was acquired on January 1, 2018.
DU30 submitted the financial statements documents for 2018 to PILIPINAS. Selected exchange rates in effect
throughout 2018 are shown below:
January 1,2018 R1: P0.8150
December 31,2018 R1: P0.8175
Average for 2018 R1: P0.8250
Date of purchase of inventory on hand R1: P0.8300
Date dividends were declared and PPE was R1: P0.8125
purchased
DU30 financial results for 2018 were as follows:
INCOME STATEMENT ( in RODS) RETAINED EARNNG STATEMENT
( in RODS)
Sales R 5,000,000 January 1,2018 R 400,000

Cost of Sales Net Income 500,000


3,500,000
Depreciation expense 150,000 Dividends ( 100,000)
Bond interest expense 100,000
Other expense 750,000

Net Income R 500,000 December 31,2018 R 800,000

STATEMENT OF FINANCIAL POSITION


Cash R 1,200,000 Current Liabilities R 400,000

Accounts Receivable Bonds Payable 2,000,000


1,900,000
Inventory 700,000 Share Capital 1,000,000
Plant equipment, net 400,000 Retained earnings 800,000
Total R 4,200,000 Total R 4,200,000

The group is in the process of consolidation for 2018 financial statements.Assume DU30, is an independent
foreign operation in Duterteland and appropriately assigns the ROD as its functional currency.
1. How much is DU30’s net income, in Philippine pesos, for the year ended 2018?
a. P 412,500 B. P 422,500 C. P 495,000 D. P 414,500
2. What is the amount of DU30’s total assets in Philippine Pesos? A
a. P 3,433,250 B. P 3,335,400 C. P 3,433,500 D. P 3,440,250
Four the next two questions assume DU30 in an integrated foreign operation of the Phil parent and assigns Phl
peso as its functional currency.

3. How much is DU30’s net income, in Philippine pesos, for the year ended 2018?
a. P 414,000 B. P 424,750 C. P 418,500 D. P 440,250
4. What is the amount of DU30’s total assets in Philippine Pesos?
a. P 3,433,250 B. P 3,335,400 C. P 3,433,500 D. P 3,440,250

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