On december 18, 2017, stephanie corporation acquired 100 percent of a swiss company for 4.0 million swiss francs (chf), which is indicative of book and fair value. at the acquisition date, the exchange rate was $1.00 = chf 1. on december 18, 2017, the book and fair values of the subsidiary’s assets and liabilities were:

cash . . . . . . . . . . . . . . . . . . . . . chf 800,000
inventory . . . . . . . . . . . . . . . . . . . 1,300,000
property, plant & equipment . . . . . . . . . . 4,000,000
notes payable . . . . . . . . . . . . . . . . (2,100,000)

stephanie prepares consolidated financial statements on december 31, 2017. by that date, the swiss franc has appreciated to $1.10 = chf 1. because of the year-end holidays, no transactions took place prior to consolidation.

a. determine the translation adjustment to be reported on stephanie’s december 31, 2017, consolidated balance sheet, assuming that the swiss franc is the swiss subsidiary’s functional currency. what is the economic relevance of this translation adjustment?

< back to assignment attempts: 1 1 keep the highest: 1 / 2 2. determining opportunity cost juanita is deciding whether to buy a suit that she wants, as well as where to buy it. three stores carry the same suit, but it is more convenient for juanita to get to some stores than others. for example, she can go to her local store, located 15 minutes away from where she works, and pay a marked-up price of $102 for the suit: store travel time each way price of a suit (minutes) (dollars per suit) local department store 15 102 across town 30 88 neighboring city 60 65 juanita makes $42 an hour at work. she has to take time off work to purchase her suit, so each hour away from work costs her $42 in lost income. assume that returning to work takes juanita the same amount of time as getting to a store and that it takes her 30 minutes to shop. as you answer the following questions, ignore the cost of gasoline and depreciation of her car when traveling. complete the following table by computing the opportunity cost of juanita's time and the total cost of shopping at each location. store opportunity cost of time price of a suit total cost (dollars) (dollars per suit) (dollars) local department store 102 across town 88 neighboring city 65 assume that juanita takes opportunity costs and the price of the suit into consideration when she shops. juanita will minimize the cost of the suit if she buys it from the . grade it now save & continue continue without saving

Henry crouch's law office has traditionally ordered ink refills 55 units at a time. the firm estimates that carrying cost is 35% of the $11 unit cost and that annual demand is about 240 units per year. the assumptions of the basic eoq model are thought to apply. for what value of ordering cost would its action be optimal? a) for what value of ordering cost would its action be optimal?

Qwest airlines has implemented a program to recycle all plastic drink cups used on their aircraft. their goal is to generate $7 million by the end of the recycle program's five-year life. each recycled cup can be sold for $0.005 (1/2 cent). a. how many cups must be recycled annually to meet this goal? assume uniform annual plastic cup usage and a 0% interest rate. b. repeat part (a) when the annual interest rate is 12%. c. why is the answer to part (b) less than the answer to part (a)?