4 Cade Inc. had a CREDIT adjustment of$6800 for the year ended December31, 2022, from restating its foreignsubsidiary's accounts from their localcurrency units into U.S. dollars.Additionally, Cade had a receivablefrom a foreign customer. It isdenominated in the customer's localcurrency. On December 31, 2021, thisreceivable for 280,000 local currencyunits (LCU) was correctly included inCade's balance sheet at $120400.When the receivable was collected onMay 10 2022, the U.S. dollar-equivalent was $108300.In Cade's 2022 consolidated statementof income, how much should bereported as foreign exchangegain/(loss) in computing net income?BE SURE TO TYPE A SIMPLE NUMBERWITH NO COMMAS OR DOLLARSIGNS. FOR EXAMPLE, TYPE 1000INSTEAD OF $1,000.IF THE NUMBER IS NEGATIVE, TYPE-1000 INSTEAD OF ($1,000)

Net Income: Net Income is the income that is earned during a particular period of time after meeting…

Answered: Cade Inc. had a CREDIT adjustment of…

Cade Inc. had a CREDIT adjustment of $6800 for the year ended December 31, 2022, from restating its foreign subsidiary's accounts from their local currency units into U.S. dollars.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Cade Inc. had a CREDIT adjustment of
$6800 for the year ended December
31, 2022, from restating its foreign
subsidiary's accounts from their local
currency units into U.S. dollars.
Additionally, Cade had a receivable
from a foreign customer. It is
denominated in the customer's local
currency. On December 31, 2021, this
receivable for 280,000 local currency
units (LCU) was correctly included in
Cade's balance sheet at $120400.
When the receivable was collected on
May 10 2022, the U.S. dollar-
equivalent was $108300.
In Cade's 2022 consolidated statement
of income, how much should be
reported as foreign exchange
gain/(loss) in computing net income?
BE SURE TO TYPE A SIMPLE NUMBER
WITH NO COMMAS OR DOLLAR
SIGNS. FOR EXAMPLE, TYPE 1000
INSTEAD OF $1,000.
IF THE NUMBER IS NEGATIVE, TYPE
-1000 INSTEAD OF ($1,000)

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