Translation of financial statements Daimler AG, a German-based MNC, has a subsidiary in Algeria (local currency, dinar, DZD). The balance sheet and income statement of the subsidiary follow. Assume that on December 31, 2020, the exchange rate is 140 DZD/€. Assume that the local (dinar) figures for the statements remain the same on December 31, 2021. Calculate the euro-translated figures for the two ending time periods, assuming that between December 31, 2020, and December 31, 2021, the dinar has appreciated against the euro by 5%.

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Sales Cost of goods sold Operating profits Translation of Income Statement December 31, 2020 Dinar Euro 5,000,000 3,500,000 1,500,000 Translation of Balance Sheet December 31, 2020 Dinar Euro 60,000,000 300,000,000 140,000,000 500,000,000 Assets Cash Inventory Plant and equipment (net) Total Liabilities and stockholders' equity Debt Paid-in capital Retained earnings Total 240,000,000 200,000,000 60,000,000 500,000,000 December 31, 2021 Euro December 31, 2021 Euro