Calculate the Translation Exposure using the Current Rate method for the company

Example: Sterlings, Ltd: The British subsidiary of a U.S. company Exchange rate $/ 1.50 $/ 1.40 $/ 1.30 Event Business started and assets acquired Average FX rate for past year FX rate at end of year $US 's Rate Revenue 120 COGS 50 Depreciation Other Expenses Inc before tax 20 10 40 Income taxes 20 Net Income f 20 Assets Cash 100 AR 200 Inventory 300 Fixed Assets 400 Total Assets E1000 Liabilities and Owner's Eq Current Liabilities 180 Long term debt Stockholders Eq 700 Common Stock 100 Retained Earnings 20 Total Liab and Equity 1000 Example: Sterlings, Ltd: The British subsidiary of a U.S. company Exchange rate $/ 1.50 $/ 1.40 $/ 1.30 Event Business started and assets acquired Average FX rate for past year FX rate at end of year $US 's Rate Revenue 120 COGS 50 Depreciation Other Expenses Inc before tax 20 10 40 Income taxes 20 Net Income f 20 Assets Cash 100 AR 200 Inventory 300 Fixed Assets 400 Total Assets E1000 Liabilities and Owner's Eq Current Liabilities 180 Long term debt Stockholders Eq 700 Common Stock 100 Retained Earnings 20 Total Liab and Equity 1000