Calculate the cumulative translation adjustment for this U.S.MNC translating the balance sheet and income statement of a French subsidiary,which keeps its books in euro,but that is translated into U.S.dollars using the current rate method,the reporting currency of the U.S.MNC.The subsidiary is at the end of its first year of operation.The historical exchange rate is $1.60/€1.00 and the most recent exchange rate is $1.50/€.
Balance Sheet Cash Inventory (Current Value =€1,800) Net fixed assets Total Assets Current liabilities Long-term debt Common stock Retained earnings CTA Total L&E Income Statement Sales Revenue COGS Depreciation NOI Tax(40%) Profit after tax Foreign Exchange gain (loss) Net income Dividends Addition to Retained Earnings Local Currency €2,100€1,500€3,000€6,600€1,200€1,800€2,700€900€6,600€10,000€7,500€1,000€1,500€600€900€900€0€900 Culyent Rate$3,150$2,250$4,500$9,900$1,800$2,700$4,320$1,394$9,900$15,484$11,613$1,548$2,323$929$1,394$1394$0€1394
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