Use the Information Below to (A)translate the Year-End Financial Statements

question 26

Essay

Use the information below to (a)translate the year-end financial statements of Perfect Company,the foreign subsidiary,using the temporal method,and (b)prepare a schedule to compute the translation gain or loss for Perfect Company.Round numbers to the nearest dollar.
On January 2,2017,Design Inc.,a U.S.parent company,purchased a 100% interest in Perfect Company,a subdivision located in Switzerland.The purchase method of accounting was used to account for the acquisition.The 2017 financial statements for Perfect Company,the subsidiary,in Swiss francs were as follows:
Sales were earned and operating expenses were incurred evenly during the year.
Exchange rates for the franc at various dates are:

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Definitions:

Perpetual Inventory System

An inventory management system that updates inventory records for each purchase and sale transaction in real-time.

FIFO

An inventory valuation method that assumes the first items placed in inventory are the first sold, hence "First In, First Out."

Ending Inventory

The value or quantity of goods and materials available at the end of an accounting period.

Perpetual Inventory System

An inventory management method where transactions are recorded in real time, providing a continuous account of inventory levels.