Papa International is a U.S. company with a subsidiary, Kid, Inc., located in the country of Sartonia. Kid was acquired by Papa on 12/3 1/2015. Papa reports its financial results in U.S. dollars (USD). The currency of Sartonia is the loca (LC). Suppose it is now the end of 2017 and Kid reports the operating results for FY 2016 and 2017 shown in the following table.

The Following exchange rates between the U.S. dollar and the local currency were observed:

*December 31, 2016--> USD/LC= 0.4545

*December 31, 2017--> USD/LC= 0.4000

*Average for FY2017 --> USD/LC= 0.4292

*Historical rate for fixed assets, inventory, and equity--> LC:USD0.5000

Notes:

*At the beginning of FY 2017, retained earnings were LC800 which were translated into USD 383.3

* Kid did not pay any dividends.

* The Cumulative Translation Ajdustment (CTA) at the end of FY2016 was equal to -$37.9 under the current rate method.

Currency Unit: LC	FY2017		FY2016
Cash	150		100
Accounts recievanble	800		650
Inventory	1,400		1,200
Current assets	2,350		1,950
Net fixed assets	1,000		900
Total assets	3,350		2,850
Accounts payable	500		500
Current debt	100		200
Long-term debt	1,150		950
Total liabilities	1,750		1,650
Common stock	400		400
Retained earnings	1,200		800
Total equity	1,600		1,200
Total Lliabilities and equity	3,350		2,850
Currency Unit: LC	FY2017
Revenue	5,500
Cost of goods sold	(3,800)
Gross margin	1,700
Other expenses	(500)
Depreciation expense	(800)
Net income	400

As compared to the current rate method, determine the impact of the temporal method on accounts receivable turnover ratio and gross profit margin ratio from Kid, Inc.'s 2017 U.S. dollar financial statements (circle an appropriate choice in the parentheses below). Make sure to justify your answers.

Account receivable turnover ratiounder the temporal method will be (greater than, the same as, lower than) that under the current rate method.

Justify why:

Gross profit margin ratio under the temporal method will be (greater than, the same as, lower than) that under the current rate method.

Justify why: