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Troy University Palmerstone Company Foreign Exchange Exposure Paper

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Prior to beginning work on this assignment, read Chapter 7 and review Case 7-2 Palmerstown Company in your course text.

Complete requirements 1, 2, and 3 of the case. Summarize your results and conclusions in a three-to-five-page paper supporting your conclusions with key concepts from the weekly reading including:

  • Discuss the results of your spreadsheet analysis including the translation of the foreign subsidiary’s financial statements into U.S. dollars and explanation of how you arrived at the cumulative translation adjustment.
  • Explain your spreadsheet analysis remeasuring the foreign subsidiary’s financial statements into U.S. dollars.
  • Prepare your assessment for management including a discussion of the relationship between key financial indicators and the meaning of the translated amounts for inventories and fixed assets.

The Case 7-2 Palmerstown Company paper

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