1. GANADO CORPORATION- Managing the Translational Exposure

Ganado Corporation

• U.S.-based multinational parent company
• Required to report consolidated financial results according to U.S. GAAP in U.S. dollars

Ganado China

• A wholly owned foreign subsidiary of Ganado Corporation
• Maintains its financial statements in Chinese yuan

Ganado U.S.

• Wholly owned domestic subsidiary of Ganado Corporation
• Maintains its financial statements in U.S. dollars

Ganado Europe

• Wholly owned foreign subsidiary of Ganado Corporation based in Germany
• Maintains its financial statements in euros

		Sales (millions, local currency)			Average Exchange Rate ($/Euro &Yun/$			Sales (millions, US $)
	2020	2021	% Change	2020	2021	% Change	2020	2021	% Change
U.S.A	$560		5.1%
Europe		E120	2.7%	1.60
China		Y1200	0%	6.7	1.5	2.94
Total
		Earnings (millions, local currency)			Average Exchange Rate ($/Euro &Yun/$			Earnings (millions, US $)
	2020	2021	% Change	2020	2021	% Change	2020	2021	% Change
U.S.A		$30	1.5%
Europe	E15.4	E16.4		1.6	1.3
China	Y54		0%	6.7		2.94
Total

Complete the table based on the information provided above. (Show your workings clearly)

\begin{tabular}{|c|c|c|c|c|c|c|c|c|c|} \hline & & \multicolumn{2}{|c|}{\begin{tabular}{l} Sales (millions, local \\ currency) \end{tabular}} & & & \multirow[b]{2}{*}{\begin{tabular}{c} % \\ Change \\ \end{tabular}} & \multirow[b]{2}{*}{2020} & \multirow{2}{*}{\begin{tabular}{|c|} \begin{tabular}{c} Sales \\ (millions, \\ US \$) \end{tabular} \\ 2021 \\ \end{tabular}} & \multirow[b]{2}{*}{\begin{tabular}{c} %% \\ Change \end{tabular}} \\ \hline & 2020 & 2021 & \begin{tabular}{c} % \\ Change \end{tabular} & 2020 & & & & & \\ \hline U.S.A & $560 & & 5.1% & & & & & & \\ \hline Europe & & E120 & 2.7% & 1.60 & . & . & & . & \\ \hline \multirow[t]{2}{*}{ China } & & Y1200 & 0% & 6.7 & 1.5 & 2.94 & & & \\ \hline & & & & & & & & & \\ \hline \multirow[t]{4}{*}{ Total } & & & & & & & & & \\ \hline & & & & & & & & & \\ \hline & & \begin{tabular}{l} Earnings \\ (millions, \\ local \\ currency) \end{tabular} & & & \begin{tabular}{c} Average \\ Exchange \\ Rate (\$/Euro \\ \&Yun/\$ \end{tabular} & & & \begin{tabular}{c} Earnings \\ (millions, \\ US \$) \end{tabular} & \\ \hline & 2020 & 2021 & \begin{tabular}{c} % \\ Change \end{tabular} & 2020 & 2021 & \begin{tabular}{c} % \\ Change \\ \end{tabular} & 2020 & 2021 & \begin{tabular}{c} % \\ Change \end{tabular} \\ \hline U.S.A & & $30 & 1.5% & & & & & & \\ \hline Europe & E15.4 & E16.4 & & 1.6 & 1.3 & & & & \\ \hline China & Y54 & & 0% & 6.7 & & 2.94 & & & \\ \hline Total & & & & & & & & & \\ \hline & & & & & & & & & \\ \hline \end{tabular}