Cairo Ingot, Ltd. Cairo Ingot, Ltd., is the Egyptian subsidiary of Trans-Mediterranean Aluminum, a British multinational that fashions automobile engine blocks from aluminum. Trans-Mediterranean's home reporting currency is the British pound. Cairo Ingot's December 31 balance sheet is shown in the popup window: At the date of this balance sheet the exchange rate between Egyptian pounds and British pounds sterling was E5.60/. | . What is Cairo Ingot's contribution to the translation exposure of Trans-Mediterranean on December 31, using the current rate method? Calculate the translation exposure loss to Trans-Mediterranean if the exchange rate at the end of the following quarter is E6.00/. Cairo Ingot's translated balance sheet using the current rate method is shown in the popup window, Assume all balance sheet accounts are the same at the end of the quarter as they were at the beginning. |. Assets Liabilities and Net Worth Cash E16,500,000 Accounts payable E24,400,000 Accounts receivable 33,000,000 Long-term debt 48,000,000 Inventory 50,500,000 Invested capital 94,100,000 66,500,000 E166,500,000 Net plant & equipment E166,500,000 Click on the icon located on the top-right corner of the data table in order to copy its contents into a spreadsheet. Cairo Ingot's Translation Gain (Loss) After Depreciation of the Egyptian pound: Current Rate Method December 31 March 31 Translated Assets Cash In Egyptian pounds (E) Exchange Rate (E/) Translated Accounts () Exchange Rate (E/) Accounts () E16,500,000 5.60 2,946,429 6.00 2,750,000 Accounts receivable Inventory 33,000,000 5.60 5,892,857 6.00 5,500,000 50,500,000 5.60 9,017,857 6.00 8,416,667 Net plant and equipment 66,500,000 5.60 11,875,000 6.00 11,083,333 Total E166,500,000 29,732,143 27,750,000 Liabilities and Net Worth Accounts payable E24,400,000 5.60 4,357,143 6.00 4,066,667 Long-term debt 48,000,000 5.60 Invested capital 94,100,000 5.60 8,571,429 16,803,571 6.00 8,000,000 5.60 16,803,571 Translation adjustment (CTA) ? 0 (1,120,238) Total E166,500,000 27,750,000 Click on the icon located on the top-right corner of the data table in order to copy its contents into a spreadsheet. 29,732,143