A Gruber PLC Operates in England and Is a Subsidiary

question 21

Essay

a. Gruber PLC operates in England and is a subsidiary of Szudy International. The functional currency of Gruber is the British pound. Gruber reported net income in 2006 of £350 million and paid a £75 million dividend on July 1, 2006 when the exchange rate was $1.55 per pound. The current rate is $1.65 per pound and the average rate for 2006 was 1.60. Compute the change in retained earnings for the period in US dollars.

b. Windsor PLC operates in England and is a subsidiary of Buckingham International. The U.S. dollar is the reporting currency for Buckingham international. The functional currency of Windsor is the British pound, and it prepares financial information in British pounds for internal use.

Windsor's 2005 and 2006 net assets were 10,000 and 11,500, respectively. The 12/31/06 exchange rate was 1.56, the 12/31/05 exchange rate was 1.50 and the average rate for the year was 1.53.

What was the translation gain or loss for the year for Buckingham when it converted Windsor's financial statements into the reporting currency?

Acknowledge the importance of architecture and garden design in the Baroque period, with a focus on individuals like Christopher Wren and André Le Nôtre.

Grasp the economic and cultural factors contributing to the flourishing of the arts in the Dutch Golden Age.

Recognize the role of art as a form of political and religious expression during this period.

Understand the evolution of portrait and landscape painting, and their popularity in the 17th century.

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Definitions:

Mucous Cells

Cells that are found in the salivary glands and the lining of the stomach and that secrete mucus.

Stomach Lining

The inner layer of the stomach, which contains glands that produce stomach acid and enzymes for digestion.

Protein Synthesis

The process by which cells build proteins, consisting of transcription (DNA to mRNA) and translation (mRNA to protein).

Vitamin B6

A water-soluble vitamin crucial for brain development and function and helps the body convert food into energy.