Ganado Europe is a subsidiary of Ganado USA. Assume the exchange rate on January 2, 2006, appreciated from December 31, 2005 from $1.2000/ to $1.500/. Calculate Ganado Europe's translated balance sheet for January 2, 2006 with the new exchange rate using the current ratemethod. Do by using both current rate method and temporal method. Assume historical rate for fixed assets is $1.2760/, inventory historical rate is 95 percent of fixed

assets, common stock is same as fixed assets.For retained earnings, it is cumulative sum of additions to retained earnings of all prior years.Where it should appear on the financial statement?

Balance Sheet Statement (thousands) Euros Assets Cash Accounts receivable Inventorv Net plant & equipment Liabilities & Net Worth 1,500,000 3,000,000 2,100,000 4,800,000 11,400,000 Accounts payable Bank loans Common stock Retained earnings 900,000 3,100,000 1,800,000 5,600,000 11,400,000