Question
Task # 1 20 Marks GANADO CORPORATION- Managing the Translational Exposure Ganado Corporation U.S.-based multinational parent company Required to report consolidated financial results according to
Task # 1 20 Marks
GANADO CORPORATION- Managing the Translational Exposure
Ganado Corporation
- U.S.-based multinational parent company
- Required to report consolidated financial results according to U.S. GAAP in U.S. dollars
Ganado China
- A wholly owned foreign subsidiary of Ganado Corporation
- Maintains its financial statements in Chinese yuan
Ganado U.S.
- Wholly owned domestic subsidiary of Ganado Corporation
- Maintains its financial statements in U.S. dollars
Ganado Europe
- Wholly owned foreign subsidiary of Ganado Corporation based in Germany
- Maintains its financial statements in euros
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| Sales (millions, local currency) |
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| Average Exchange Rate ($/Euro &Yun/$ |
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| Sales (millions, US $) |
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| 2020 | 2021 | % Change | 2020 | 2021 | % Change | 2020 | 2021 | % Change | ||
U.S.A | $560 |
| 5.1% |
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Europe |
| E120 | 2.7% | 1.60 | 1.3 |
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China |
| Y1200 | 0% | 6.7 |
| 2.94 |
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Total |
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| Earnings(millions, local currency) |
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| Average Exchange Rate ($/Euro &Yun/$ |
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| Earnings (millions, US $) |
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| 2020 | 2021 | % Change | 2020 | 2021 | % Change | 2020 | 2021 | % Change | ||
U.S.A |
| $30 | 1.5% |
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Europe | E15.4 | E16.4 |
| 1.6 | 1.3 |
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China | Y54 |
| 0% | 6.7 |
| 2.94 |
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Total |
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Complete the table based on the information provided above.
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