The Following Information Pertains to Questions

question 49

Essay

The following information pertains to questions
On December 31,2013,Hilman Enterprises of Montreal paid $12,000,000 for 100% of the outstanding shares of Wilsen Corp of the United States.Wilsen's fair values approximated its book values on that date.
Wilsen's comparative balance sheets for 2013 and 2014 are shown below: Wilsen paid U.S.$100,000 in dividends on September 30,2014.
The inventories on hand at the end of 2014 were purchased when the exchange rate was
$1U.S.= $1.195 CDN.
For questions 42 through 45 inclusively,assume that Wilsen is considered to be an integrated subsidiary.
-Translate Wilsen's December 31,2014 Balance Sheet.

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Definitions:

Interest Expense

This is the cost incurred by an entity for borrowed funds, which can include the cost of bonds, loans, and lines of credit.

Depreciation

The allocation of the cost of an asset over its useful life, reflecting the loss in value over time.

Net Working Capital

The measure of a business's available short-term resources versus its short-term financial commitments, indicating its near-term financial strength.

Fixed Asset

A fixed asset is a long-term tangible piece of property or equipment that a firm owns and uses in its operations to generate income, and is not expected to be consumed or converted into cash within a year.