Assume that your company owns a subsidiary operating in Mexico. The subsidiary maintains its books in the Mexican Peso as its functional currency. The subsidiary's financial statements (in Pesos) for the most recent year follow in a. below:

The relevant exchange rates ($:Peso) are as follows:

BOY rate	$0.080
EOY rate	$0.090
Avg. rate	$0.085
PPE purchase date rate	$0.086
LTD borrowing date rate	$0.089
Dividend rate	$0.087
Historical rate (common stock and APIC)	$0.060

(assume that the BOY Retained Earnings is $70,503).

Round all answers in the "in US Dollars" column to the nearest dollar.

Statement of Cash Flows: $ 0.085 0.095 0.095 0.005 Net income Change in accounts receivable Change in inventories Change in current liabilities Net cash from operating activities Change in PPE, net Net cash from Investing activities Change in long term debt Dividends Net cash from financing activities Nel change in tash Effect of exchange rate on cash Beginning cash Ending cash $273,000 175,400) 196,950) 55,120 155,870 199,840) 199.8401 128,440 127,300 101,140 157,170 0.036 22,205 16,409) 18.232) 4,685 13,219 18.586) 18.5861 11,431 12,3751 9,056 12,249 x 0.089 0.097 . 397.800 5354,970 31,824 49,947 $ b. Compute the ending Cumulative Translation Adjustment directly, assuming a BOY balance of $17.246. Round the BOY net assets to reconcile the cumulative translation adjustment. Round all answers to the nearest dollar. Direct computation of translation adjustment BOY net assets x (FOY-BOY exchange rates) S Net income (EOY - Average exchange rate) Dividends x{EOY - Dividend exchange rale) . 0 x 116 x BOY cumulative translation adjustment EOY cumulative translation adjustment 10 40 * 40 X s