7. Shanghai Corporation, the Chinese affiliate of a U.S manufacturer, has the balance sheet shown below. The current exchange rate is $0.2= CYNI. Balance sheet of shanghai: assets Liabilities and Stockholders' equity Cash CNY Accounts payable CNY 21,000 5,000 Long-term debt 27,000 Accounts receivables 14,000 Inventories Stockholders' equity 32,000 22,000 Total Liabilities & Stockholders' equity Fixed assets net CNY80,000 39,000 CNY Total assets 80,000 Required: 1. If the Chinese Yuan appreciate by 30%, what would be the translation effects under monetary non-monetary method? 2. If the Chinese Yuan depreciated by 20%, what would be the translation effects under temporal method