Facts

Z operates in a hyperinflationary economy. Its balance sheet at December 31, 20X5, follows:

m. zlotis

Property, plant, and equipment

900

Inventory

2,700

Cash

350

Share capital (issued 20X1)

400

Retained earnings

2,350

Noncurrent liabilities

500

Current liabilities

700

The general price index had moved in this way:

December 31

20X1

100

20X2

130

20X3

150

20X4

240

20X5

300

The property, plant, and equipment was purchased on December 31, 20X3, and there is six months’ inventory held. The noncurrent liabilities were a loan raised on March 31, 20X5.

Required

Show the balance sheet of Z after adjusting for hyperinflation.