In picture 5, how we retained earnings became 142?

Temporal and Current Rate Methods Translation methods illustrated U.S. Inc. owns Juarez, SA, a subsidiary in Mexico which was established January 1, 2010. Juarez's balance sheet items as of 12/31/10, in pesos: Cash Accounts rec. Inventory Fixed assets Accum. depr. 1,000 2,000 2,500 8,000 1,000 Accounts payable Long-term debt Capital stock Retained earnings 2,000 6,000 3,000 1,500 picture 1 Learning Objective 4 8-11 Temporal and Current Rate Methods Translation methods illustrated Juarez's income statement items for 2010, in pesos: 1,000 Sales COGS S,G,&A exp. 20,000 14,000 2,500 Depr. exp Interest exp. Income tax exp. 500 500 picture 2 Learning Objective 4 8-12 Temporal and Current Rate Methods Translation methods illustrated Relevant exchange rates (U.S. dollar per Mexican peso): January 1, 2010 Average for 2010 Average for 4th quarter 2010 December 31, 2010 $0.10 $0.095 $0.09 $0.08 picture 3 Learning Objective 4 8-14 Temporal and Current Rate Methods Current Rate Method Income Statement Income Statement - 2010 Sales 1,900 COGS 1,330 Gross profit 570 S,G,&A Depreciation expense Interest expense Income tax expense Net income 142 238 95 48 47 picture 4 Learning Objective 4 8-15 Temporal and Current Rate Methods Current Rate Method - Balance Sheet Balance Sheet - December 31, 2010 80 160 160 480 Cash Accounts Rec. Inventory Fixed Assets, net Total assets 200 Accounts payable Long-term debt Capital stock Retained earnings Cumulative translation adj. Total liab. & S.E. 300 545 985 142 (92) 985 picture 5 Learning Objective 4 8-16