Airline Marketing Financial Valuation

1 Airline marketing Name Institution Date Financial valuation 2 1. Calculate the transaction gain or loss resulting from the transaction of lambda corp financial statement into Canadian dollars The company conducted three conversion of the financial statement into the Canadian amount which include the conversion from the rupee into Canadian dollar at the financial stamen declaring period, on 10 October 2020, and during the payment period on 15 November 2020 and during the closing period at 31 dec 2020 as shown below . statement of comprehensive income in INR value at declared date of October 10 2020 value at payment date November 15, 2020 value at closing date 31 dec 2020 sales 48500000 882700 902100 877850 cost of goods sold 24100000 438620 448260 436210 depreciation expense 2000000 36400 37200 36200 other expenses 12600000 229320 234360 228060 interests expense 2400000 43680 44640 43440 income tax expense 3220000 58604 59892 58282 net and comprehensive income 4180000 76076 77748 75658 gain or loss in net income 1672 - gain -418 -loss During declaring period in October the exchange rate was CAD 0.0182 for one rupee. This was the recorded amount. After during the payment period the company had to pay less so Financial valuation 3 that they can reach the amount expected by the shareholders due to the gain in the exchange rate between the Canadian dollar and the rupee. During the financial reporting the dollar had gain its value thus there was loss in the company due to the gain as they bring the asset in Canadian value. statement of comprehensive income in INR value at declared date of October 10 2020 value at payment date november 15, 2020 value at closing date 31 dec 2020 cost of goods sold 24100000 438620 448260 436210 depreciation expense 2000000 36400 37200 36200 inventory 3000000 54600 1015.56 54300 1. B . in the event that the functional currency of the company lambda is the Canadian dollar then there would be no need to convert the currency into the Canadian dollar as the account would be in Canadian dollar already. This mean there will be no gain or l oss coming from the transaction as there would be no transaction Financial valuation 4 2. a. Good will at acquisition= 160000 b. Investment income= 580000 - 400000= $180,000 c. Peter percentage ownership percentage = 90% d. The investment income from scooter under equity = -100000 - 56000 - 25000= - 181000 e. Peter sold 9000 * 12= 108000 Peter shares are = 200000 *0.9= (181000 – 9000)/200000= 85.5%