1. ) Calculate the cumulative translation adjustment (CTA) 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	Local Currency
Cash	2,100
Inventory
(Current Value = 1800 Euro)	1,500
Net Fixed assests	3,000
Total Assest	6,600
Current Liabilities	1,200
Long-term debt	1,800
Common stock	2,700
Retained earnings	900
CTA
Total L&E	6,600
Income Statement
Sales Revenue	10,000
COGS	7,500
Depreciation	1,000
NOI	1,500
Tax (40%)	600
Profit after tax	900
Foreign Exchange gain (loss)
Net Income	900
Dividends	-
Additional to Retained Earnings	900