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HiTech, Inc. is a U.S. firm with a Mexican subsidiary. The subsidiary reports that its balance sheet shows the following items: Cash 5,000 pesos Short

HiTech, Inc. is a U.S. firm with a Mexican subsidiary. The subsidiary reports that its balance sheet shows the following items:

Cash 5,000 pesos

Short term securities at market 3,000

Accounts receivable 1,000

Inventories at cost 3,000

Net plant 3,000

Current liabilities 5,000

Longterm debt 4,000.

The current rate is 30 Mexican Pesos=US$1.

Assume that the historical rate is 20 pesos per dollar. What is the translation exposure according to the current, current/noncurrent, monetary/nonmonetary, and temporal methods?

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