What is the overall effect on the consolidated financial statements if the FC is the functional currency instead of the USD?

What is the impact on the subsidiary's liquidity, solvency and profitability financial ratios if the FC is the functional currency instead of the USD? Do the ratios computed using the Current Rate and Temporal Method derived amounts tell the same story of the subsidiary's financial standing?

 

December 31, 2021 Sales Cost of goods sold Gross profit Selling expense Depreciation expense Remeasurement gain/loss Income before tax Income taxes Net income Retained earnings, 1/1/21 Ret. earnings, 12/31/21 Cash Inventory Fixed assets Less: accum/deprec Total assets Current liabilities Long-term debt Contributed capital Cum. trans. adjust." Retained earnings Total liab and stock equity Exchange Rates January 1-31, 2021 (H) Average 2021 (A) December 31, 2021 (C) Inventory purchases Key: Average Exchange Rate Current Exchange Rate Historical Exchange Rate $ $ $ $ FC 5,800 $ (3,200) $ 2,600 1,400 (500) S (700) S 1,000 1,000 (400) $ 1,800 $ 2,400 $ 7,000 $ (700) $ 10,500 1,500 $ 3,500 $ 4,500 $ A C H 1,000 10,500 *Computation of Translation Adjustment Net assets, 1/1/21 Net income, 2021 Net assets, 12/31/21 Net assets, 12/31/21 at current exchange rate Translation adjustment (negative) FC 0.68 0.63 0.56 0.61 4500 $ 1000 $ 5500 5500 $ Current Rate Method Rate USD 0.63 AS 0.63 A $ S 0.63 A $ 0.63 A $ $ S S 0.63 A $ $ $ 0.56 C $ 0.56 C $ 0.56 C $ 0.56 C $ $ 0.68 0.63 $ 0.56 C S 0.56 C S 0.68 H $ 0.56 $ $ $ $ $ $ $ 3,654 $ (2,016) 1,638 (315) $ (441) S $ 882 (252) S 630 . 630 1,008 $ 1,344 S 3,920 $ (392) $ 5,880 840 S 1,960 $ 3,060 $ (610) 630 5,880 BI P El COGS Temporal method-COGS (on a FIFO basis) 2,000 $ 3,600 $ $ (2,400) 3,200 USD 3,060.00 630.00 3,690.00 3,080.00 Temporal Method 0.63 A $ $ $ 0.63 A $ 0.68 H $ $ $ 0.63 A $ $ $ 0.56 C $ 0.61 H $ 0.68 H $ 0.68 H $ $ 610.00 Rate 0.56 C $ 0.56 C $ 0.68 H $ $ $ USD 3,654 (2,092) 1,562 (315) (476) 377 1,148 (252) 896 896 1,008 1,464 4,760 (476) 6,756 840 1,960 3,060 896 6,756 0.68 S 1,360.00 0.61 S 2,196.00 0.61 S (1,464.00) $ 2,092.00 CA CL Current ratio Total liabilities Total stockholders' equity Debt to equity ratio NI Sales Profit margin NI Average TSE Return on equity COGS Average Inventory Inventory turnover FC Current Rate 4,200 S 1,500 S 2.8 5,000 $ 5,500 $ 0.9091 1,000 $ 5,800 $ 0.1724 1,000 S 5,000 $ 0.20 3,200 $ 1,200 S 2.67 2,352 $ 840 $ 2.8 2,800 $ 3,080 $ 0.9091 630 $ 3,654 $ 0.1724 630 S 3,070 $ 0.2052 2,016 S 672 $ 3.00 Temporal 2,472 840 2.9429 2,800 3,956 0.7078 896 3,654 0.2452 896 3,508 0.2554 2,092 732 2.86