January 1, Year 1 June 1, year 1 Average for year 1 November 15, Year 1 December 1, Year 1 December 31, Year 1 1.00 1.05 1.08 1.07 1.09 1.12 Temporal Method USD Sales COGS Gross Profit Depcreciation expense Other Operating expenses Income before tax Income taxes Remeasurement gain (loss) Net Income Peso X Rate 1,000,000 (600,000) 400,000 (50,000) (150,000) 200,000 (90,000) 110,000 Retained earnings 1/1/Y1 Net Income , Year 1 Dividends, 6/1/Y1 Dividends, 12/1/Y1 Retained Earnings 12/31/Y1 110,000 (30,000) (30,000) 50,000 Cash Receivables Inventory Plant and Equipment Less Accumulated Depreciation Total Assets 60,000 150,000 270,000 500,000 (50,000) 930,000 Accounts Payable Long-term Debt Common Stock Retained Earnings 12/31/Y1 Total Liabilities and stockholders' Equity 80,000 500,000 300,000 50,000 XXXX 930,000 January 1, Year 1 June 1, year 1 Average for year 1 November 15, Year 1 December 1, Year 1 December 31, Year 1 1.00 1.05 1.08 1.07 1.09 1.12 Temporal Method USD Sales COGS Gross Profit Depcreciation expense Other Operating expenses Income before tax Income taxes Remeasurement gain (loss) Net Income Peso X Rate 1,000,000 (600,000) 400,000 (50,000) (150,000) 200,000 (90,000) 110,000 Retained earnings 1/1/Y1 Net Income , Year 1 Dividends, 6/1/Y1 Dividends, 12/1/Y1 Retained Earnings 12/31/Y1 110,000 (30,000) (30,000) 50,000 Cash Receivables Inventory Plant and Equipment Less Accumulated Depreciation Total Assets 60,000 150,000 270,000 500,000 (50,000) 930,000 Accounts Payable Long-term Debt Common Stock Retained Earnings 12/31/Y1 Total Liabilities and stockholders' Equity 80,000 500,000 300,000 50,000 XXXX 930,000