3. 16.

Translation exposure [LO 21.3] Atreides International has operations in Arrakis. The statement of financial position for this division in Arrakeen solaris shows assets of 38 000 solaris, debt in the amount of 12 000 solaris, and equity of 26 000 solaris.

1. If the current exchange ratio is 1.50 solaris per dollar, what does the statement of financial position look like in dollars?
2. Assume that one year from now the statement of financial position in solaris is exactly the same as at the beginning of the year. If the exchange rate is 1.60 solaris per dollar, what does the statement of financial position look like in dollars now?
3. Rework part

(b) assuming the exchange rate is 1.41 solaris per dollar.