EXCHANGE RATES:

January 1, Year 1	$1.25
March 31, Year 1	$1.22
June 30, Year 1	$1.30
September 30, Year 1	$1.37
December 31, Year 1	$1.40
Weighted Average	$1.35

Internal Memo Regarding Oversea's Inc.

Memo

To: USA Inc., Controller's Office

From: Kendall Cahill, CFO

Date: January 1, Year 1

Re: Overseas Inc.

We are excited to announce that effective today, we have organized a foreign subsidiary named Overseas Inc. that will become part of our consolidated entity. It is located within a region of Europe that we feel offers us considerable economic advantages and can help us grow international sales significantly. Beginning with the Year 1 financial statements, we will need to convert its results into our U.S. dollar reporting currency. Its currency is the local currency unit (LCU) and you will need to make sure to apply the appopriate exchange rates in preparing our year-end financial statements. This is an exciting time for us and we look forward to exploring additional international opportunities in the coming years.

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Controllers Office Email

Thursday, March 31, Year 1 10:43 a.m.

Stevens, Roger (controller, USA Inc.) Stock Issuance and Asset Purchases

To: Mansfield, Jason (associate controller, USA Inc.)

Jason,

In reference to the original Overseas Inc. memo issued by Kendall, I wanted to make sure that you were aware of a few transactions that took place on the date of the memo. We issued 500,000 shares of common stock as part of the organization of Overseas Inc., with a par value of $3 per share. We also purchased $850,000 of inventory and $3.2 million of fixed assets as of the same date. Please make sure that we account for these transactions correctly in our year-end finacial statements.

Best,

Roger

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Use the information above to determine the appropriate exchange rates to be used by USA Inc. to convert Overseas Inc. financial statements under the remeasurement and translation methods. In the Remeasurement and Translation columns, enter the appropriate amounts in the associated cells. Enter all values as positive numbers.

	Remeausurement	Translation
Balance Sheet Accounts
Accounts Receivables
Inventory
Fixed Assets (net)
Long-Term debt
Common Stock
Income Statement Accounts:
Sales
Cost of Goods Sold
SG&A Expenses
Depreciation