Translation of financial statements Assume that your company owns a subsidiary operating in Canada. The subsidiary maintains its books in the Canadian Dollar (CAD) as its functional currency. Following are the subsidiarys financial statements (in CAD) for the most recent year:

	(in CAD)			(in CAD)			(in CAD)
Income Statement:			Balance Sheet:			Statement of Cash Flows:
Sales	1,350,000		Assets			Net Income	189,000
Cost of Goods Sold	(810,000)		Cash	384,210		Change in accounts receivable	(52,500)
Gross profit	540,000		Accounts receivable	313,200		Change in inventories	(67,050)
Operating expenses	(351,000)		Inventory	402,300		Change in current liabilities	38,160
Net income	189,000		Property, plant, and			Net cash from operating activities	107,910
			equipment (PPE), net	744,120
			Total assets	1,843,830
Statement of retained earnings:						Change in PPE, net	(69,120)
BOY ret. earnings	708,750		Liabilities and stockholders equity			Net cash from investing activities	(69,120)
Net income	189,000		Curr. liabilities	228,960
Dividends	(18,900)		L-T liabilities	533,520		Change in long-term debt	88,920
EOY ret. earnings	878,850		Common stock	90,000		Dividends	(18,900)
			APIC	112,500		Net cash from financing activities	70,020
			Ret. earnings	878,850
			Total liabilities and equity	1,843,830		Net change in cash	108,810
						Beginning cash	275,400
						Ending cash	384,210

The relevant exchange rates ($:CAD) are as follows:

BOY rate	$0.70
EOY rate	$0.76
Avg. rate	$0.73
PPE purchase date rate	$0.74
LTD borrowing date rate	$0.74
Dividend rate	$0.75
Historical rate (common stock and APIC)	$0.60

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 $(37,237).

Round all answers to the nearest dollar.

Direct computation of translation adjustment:
AnswerBOY cumulative translation adjustmentBOY net assets x (EOY - BOY exchange rates)BOY net assets x BOY exchange rateNet income x (EOY - Average exchange rate)Net income x average exchange rateDividends x (EOY - Dividend exchange rate)Dividends x dividend exchange rateEOY net assets x EOY exchange rateEOY cumulative translation adjustmentTranslation adjustment for the year	$Answer
Net income x (EOY - Average exchange rate)	Answer
AnswerBOY cumulative translation adjustmentBOY net assets x (EOY - BOY exchange rates)BOY net assets x BOY exchange rateNet income x (EOY - Average exchange rate)Net income x average exchange rateDividends x (EOY - Dividend exchange rate)Dividends x dividend exchange rateEOY net assets x EOY exchange rateEOY cumulative translation adjustmentTranslation adjustment for the year	Answer
	Answer
AnswerBOY cumulative translation adjustmentBOY net assets x (EOY - BOY exchange rates)BOY net assets x BOY exchange rateNet income x (EOY - Average exchange rate)Net income x average exchange rateDividends x (EOY - Dividend exchange rate)Dividends x dividend exchange rateEOY net assets x EOY exchange rateEOY cumulative translation adjustmentTranslation adjustment for the year	Answer
EOY cumulative translation adjustment	$Answer