22. Assume that the balance sheet and income statement of a UK subsidiary, which keeps its books in British pounds, is translated into U.S. dollars, the reporting currency of the U.S. MNC. The table below presents the balance sheet and income statement in pounds. The subsidiary is at the end of its first year of operation, meaning the balance of retained earnings at the beginning of this year is 0. It is also carrying its inventory at current value. The historical exchange rate is 1.20/$, and the current exchange rate is 0.80/$. At your discretion, translate the balance sheet and income statement for this UK subsidiary using current/noncurrent.

Balance Sheet
Cash		500
Inventory		900
Net fixed assets		1,500
Total Assets		2,900
Current liabilities		120
Long-term debt		700
Common stock		1,200
Retained earnings		880
CTA
Total L&E		2,900

Income Statement
Sales Revenue		2,300
COGS		900
Depreciation		300
Net Operating Income		1,100
Tax(20%)		220
Profit after tax		880
Foreign Exchange gain (loss)
Net income		880
Dividends		0
Addition to Retained Earnings		880