1. Shanghai Corporation, the Chinese affiliate of a U.S manufacturer, has the balance sheet shown below. The current exchange rate is $0.25= CYN1.

Assets	Liabilities and Stockholders equity
Cash CNY 70,000 Accounts receivables 160,000 Inventories 240,000 Fixed assets net 410,000 Total CNY 880,000	Accounts payable CNY 230,000 Long-term debt 290,000 Stockholders equity 360,000 Total CNY 880,000

Required:

1. If the Chinese Yuan appreciate by 30 percent, what would be the translation effects under current- noncurrent method?

If the Chinese Yuan depreciated by 25 percent, what would be the translation effects under the monetary- nonmonetary method?