(Learning Objective 4: Translating a foreign-currency balance sheet into dollars)

Translate into dollars the balance sheet of Utah Leather Goods’ Spanish subsidiary. When Utah Leather Goods acquired the foreign subsidiary, a euro was worth $1.01. The current exchange rate is $1.38. During the period when retained earnings were earned, the average exchange rate was $1.18 per euro.

■ spreadsheet During the period covered by this situation, which currency was stronger, the dollar or the euro?