Given the following balance sheet of a US based MNCs fully operational subsidiary, who operates in Japan and whose functional currency is the Japanese Yen, determine the amount of the translation exposure in dollars if the Yen depreciates by 10% from 110/$ to ~122/$ by applying the current rate method.

Balance Sheet of Subsidiary in

Assets Liabilities + Equity

Cash 145,000 Accounts Payable 246,000

A/R 104,000 Short Term Debt 128,000

Inventory 275,000 Long term debt 329,000

PPE 895,000 Common Stock 534,000

Retained Earnings 182,000

Total 1,419,000 1,419,000