Using facts in the chapter for Ganado Europe, assume that the exchange rate on January 2, 2020, in Exhibit 11.5 appreciated from $1.2000 = €1.00 to $1.5000 = €1.00. Calculate Ganado Europe’s translated balance sheet for January 2, 2020, with the new exchange rate using the temporal method.  

Exhibit 11.5

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Assets Cash Accounts receivable Inventory Net plant and equipment Total Liabilities and Net Worth Accounts payable Short-term bank debt In Euros (€) 1,800,000 2,800,000 2,200,000 5,300,000 12,100,000 Long-term debt Common stock Retained earnings Translation adjustment (CTA) Total 1,000,000 1,700,000 2,000,000 2,400,000 5,000,000 December 31, 2010 Translated Accounts (US$) Exchange Rate (US$/euro) 1.2000 1.2000 1.2000 1.2000 1.2000 1.2000 1.2000 1.2760 1.2000 (a) $2,160,000 3,360,000 2,640,000 6,360,000 $14,520,000 $1,200,000 2,040,000 January 2, 2011 2,400,000 3,062,400 6,000,000 (182,400) Exchange Rate (US$/euro) 0.9200 0.9200 0.9200 0.9200 $920,000 1,564,000 1,840,000 3,062,400 6,000,000 (2,254,400) 12,100,000 $14,520,000 $11,132,000 (a) Dollar retained earnings before depreciation are the cumulative sum of additions to retained earnings of all prior years, translated to exchange rates in each year. 0.9200 0.9200 0.9200 1.2760 1.2000 (b) Translated Accounts (US$) $1,656,000 2,576,000 2,024,000 4,876,000 $11,132,000