Kittle estimates it's cash flows from both the U.S., in dollars, and Canada, in Canadian dollars, for a typical quarter. These figures are summarized in the following table. U.S. Canada Sales $315 C$5 -Cost of materials $50 C$200 -Operating expenses $60 -Interest expenses $4 C$10 Cash flows $201 -$C205 Kittle believes that the value of the Canadian dollar will be either $0.80 or $0.90 and seeks to analyze its cash flows under each of these scenarios. The following table shows Kittle's cash flows under each of these exchange rates. Sales (1) U.S. Sales (2) Canadian Sales (3) Total sales in U.S. $ Cost of Materials and Operating Expenses (4) U.S. Cost of Materials (5) Canadian Cost of Materials (6) Total Cost of Materials in U.S. $ (7) Operating Expenses Interest Expense (8) U.S. Interest Expense (9)Canadian Interest Expense (10) Total Interest Expenses in U.S. Cash Flows in U.S.$ before Taxes Exchange Rate Scenario C$1=$0.80 Exchange Rate Scenario C$1=$0.90 (Millions) (Millions) $315 $315 C$5 X $0.80 = $4.00 C$5 X $0.90 = $4.50 $319.00 $319.50 $50 $50 C$200 X $0.80 = $160.00 C$200 X $0.90 = $180.00 $210.00 $60 $230.00 $60 $4 C$10 X $0.80 = $8.00 $12.00 $37.00 $4 C$10 X $0.90 = $9.00 $13.00 $16.50 For Kittle Co., a stronger Canadian dollar has a stronger influence on Canadian dollar than it does on Canadian dollar