Germon USA presents the following condensed income statement items that capture its projected operation in the USA and Germany for the fiscal year of 2021 in Panel A. The forecasts for exchange rates and corresponding probabilities are presented in Panel B. Panel A: Operating Highlights Panel B: Exchange Rate Forecasts Sales: Exchange rate Probability US sales $320 $1.18/ 30% German Sales 55.00 $1.23 / 40% Cost & Operating Expenses: $1.28 / 30% $50 US cost of raw materials Total 100% German cost of materials 210.00 Quiz navigation 123 Finish atteric Time left 0:46 German cost of materials 210.00 $55 Operating Expenses in the USA Operating Expenses in Germany Interest Expenses: In USA $3 In Germany 15.00 Requirements: 1. Construct the income statement for the firm by showing the earnings before tax (EBT) In Germany 15.00 Requirements: 1. Construct the income statement for the firm by showing the earnings before tax (EBT) for each possible exchange rate outcome. (3 Marks) 2. Determine the expected level of EBT for the company (1 Mark). 3. The company has a policy to actively manage economic exposure if the range of the forecasted EBT is at least 30% of the expected level of EBT. Given the information above, should the company engage in managing the economic exposure? (1 Mark) BII US X X X 38 Trade Patterns pdf 1