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Streep inc is a U.S.-based muloinational firm with a subsidiary in Switzerland. Last week, Streep created its periodic financial statementes, and the subsidiary had SFr

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Streep inc is a U.S.-based muloinational firm with a subsidiary in Switzerland. Last week, Streep created its periodic financial statementes, and the subsidiary had SFr 50,000 worth of imventory on its balance shees. Streep translated the value of inventory using the spot eichange rate at that time of $0.8153/ SFr and recorded that value on its consolidated balance sheet. Houpevec this seek the ecchange rate changed dramatically to $0.9025/ SFr. The subsidiary still has the same amount of inventory (ralued at sfr50.000 ). If the firm were to creare a new consolidated balance sheet and translate the value of its inventory at the new spot exchange rate. what would happen to the doliar value of inventory? It would decrease by $4,360, It would decrease br 5,232 . If whuld incremse by 54,360 . ft mould increass by 4.796 . The ehange in invenxocy value aias created purely by accounting and ecchange rate facrors, becuust the subaidiacy atill has the abme invertory and whect would this have co surep's current rabo? The current ratio vould increase The cument motio ick d decrease

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