Translation of financial statements Assume that your company owns a subsidiary operating in France. The subsidiary conducts most of its business activities in the European Economic Union and maintains its books in the Euro as its functional currency The subsidiary's financial statements (in ) for the most recent year follow in part a. below: The relevant exchange rates ($:1) are as follows: BOY rate $0.97 EOY rate $1.06 Avg. rate $1.03 PPE purchase date rate $1.02 LTD borrowing date rate $1.05 Dividend rate $1.04 Historical rate (common stock and APIC) $0.65 For both parts a. and b. below, use a negative sign with answers to indicate a reduction. b. Compute the ending Cumulative Translation Adjustment directly, assuming a BOY balance of $120,375.50. Do not round your answers for part b. Direct computation of translation adjustment: BOY net assets x (EOY - BOY exchange rates) $ Net income (EOY - Average exchange rate) Dividends x (EOY - Dividend exchange rate) 0 0 0 0 120,375.5 BOY cumulative translation adjustment EOY cumulative translation adjustment $ 0 Translation of financial statements Assume that your company owns a subsidiary operating in France. The subsidiary conducts most of its business activities in the European Economic Union and maintains its books in the Euro as its functional currency The subsidiary's financial statements (in ) for the most recent year follow in part a. below: The relevant exchange rates ($:1) are as follows: BOY rate $0.97 EOY rate $1.06 Avg. rate $1.03 PPE purchase date rate $1.02 LTD borrowing date rate $1.05 Dividend rate $1.04 Historical rate (common stock and APIC) $0.65 For both parts a. and b. below, use a negative sign with answers to indicate a reduction. b. Compute the ending Cumulative Translation Adjustment directly, assuming a BOY balance of $120,375.50. Do not round your answers for part b. Direct computation of translation adjustment: BOY net assets x (EOY - BOY exchange rates) $ Net income (EOY - Average exchange rate) Dividends x (EOY - Dividend exchange rate) 0 0 0 0 120,375.5 BOY cumulative translation adjustment EOY cumulative translation adjustment $ 0