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Assume that the balance sheet and income statement of a French subsidiary, which keeps its books in euro, is translated into U.S. dollars, the reporting

Assume that the balance sheet and income statement of a French subsidiary, which keeps its books in euro, is translated into U.S. dollars, the reporting currency of the U.S. MNC.The table presents the balance sheet and income statement in euro.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 $1.80/.Fill out the missing entries that translate the balance sheet and income statement for this French subsidiary using the Current/Noncurrent Method.


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Local Currency Current/Non current N - 2,100 1,500 $ $ 3,780 2,700 3 4 5 6 4,800 11,280 3,000 6,600 1,200 1,800 2,700 900 $ $ $ $ $ $ CN4 CN5 CN6 CN7 CNS 7 8 9 10 6,600 CN4 Balance Sheet Cash Inventory (current Value = 1,800) Net fixed assets Total Assets Current liabilities Long-term debt Common stock Retained earnings Total L&E Income Statement Sales Revenue COGS Depreciation NOI Tax(40%) Profit after tax Foreign Exchange gain (loss) Net income Dividends Addition to Retained Earnings 11 we 12 13 14 15 16 17 10,000 7,500 1,000 1,500 600 900 $ $ $ $ CN14 CN15 CN16 CN17 $ CN18 18 19 900 0 ut 20 CN18 900

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