6. Shanghai Corporation, the Chinese affiliate of a U.S. manufacturer, has the balance sheet shown below. The current exchange rate is $.0.15 = CNY1. Balance Sheet of Shanghai Corporation (000's) Assets Cash CNY 5,000 Accounts receivable 14,000 Inventories (cost = 24,000) 22,000 Fixed assets, net 39,000 Total assets CNY80,000 Liabilities Accounts payable Long-term debt CNY21,000 27,000 Stockholders' equity Total liab & SE 32,000 CNY80,000 "Inventories are carried at the lower of cost or market. Required: a. Translate the Chinese dollar balance sheet of Shanghai Corporation into U.S. dollars at the current exchange rate of $.0.15 12 = CNY1. All monetary accounts in Shanhai's balance sheet are denominated in Chinese yuan. b. Assume the Chinese yuan revalues from $0.15 = CNY1 to $0.1875 = CNY1. What would be the translation effect if Shanghai's balance sheet is translated by the current-noncurrent method? By the monetary-nonmonetary method? Assume instead that the Chinese yuan weakens from $0.15 = CNY1 to $0.1125 = CNY1. What would be the translation effect under each of the two translation methods? c