2019

31-Dec RMB 7.2029 = $1

Avg Rate RMB 7.7558 = $1
RMB million
2019
Sales 11,750
Expenses 9,500
Net Income 2,250
Monetary Assets 6,500
Non−Monetary Assets 16,000
Monetary Liabilities 9,000
Common Stock 10,000
Retained Earnings 3,500

ABC Company
Income statement (in Mill
For the Year ended December
Data given for year 2019
Accounts RMB
Sales 11,750
Expenses 9,500
Income before translation gain (loss) 2,250
Translation gain (loss) N/A
Net Income 2,250
Dividends -
Chane in Retained earnings 2,250

ABC Company
Balance sheet (in Million
December 31,2019
Data given for year 2019
Accounts RMB
Monetary Assets 6,500
Non−Monetary Assets 16,000
Total Assets 22,500
Monetary liabilities 9,000
Common stock 10,000
Retained earnings 3,500
Cummulative translation adjustment -
Total Liabilities and Equity 22,500
 2018
RMB 7.8740 = $1 2019 2018
RMB 7.1422 = $1 Average rate 7.7558 7.1422
Current rate 7.2029 7.8740
2018 Historical 7.8740
7,000
5,400
1,600
6,000
14,000
8,750
10,000
1,250
7.874

ABC Company
ncome statement (in Millions)
he Year ended December 31, 2019
Current rate Method Temporal Method
Rate used $ Rate used $
7.7558 (A) 1514.995 7.7558 (A) 1514.995
7.7558 (A) 1224.890 7.8740 (H) 1206.502
7.7558 (A) 290.105 (R- E) 308.493
N/A Plug in Number 106.41
(R - E) 290.105 Change in RE + Div 414.903
- - - -
(NI - Dividends) 290.105 (NI- dividends) 414.903

7.2029

ABC Company
Balance sheet (in Millions)
December 31,2019
Current rate Method Temporal Method
Rate used $ Rate used $
7.2029 (C) 902.414 7.2029 (C) 902.414
7.2029 (C) 2221.328 7.8740 (H) 2032.004
Sum 3,123.74 Sum 2,934.42
7.2029 (C) 1249.497 7.2029 (C) 1,249.50
7.8740 (H) 1270 7.8740 (H) 1270
From IS 290.105 From IS 414.90
A-(L+E) 314.137 A-(L+E) 0.016
3,123.74 2,934.42
Transaction USD
Bought 10,000,000
Sold (50,000,000)
Sold (36,000,000)
Bought 100,000,000
24,000,000
Long of 24 USD
Final position

Trade out @ 7.750 24,000,000

Profit @ 7.750

Trade out @ 7.751 24,000,000

 rate HKD
7.7520 77,520,000.00
7.7540 (387,700,000.00)
7.7530 (279,108,000.00)
7.7500 775,000,000.00
185,712,000.00

HKD/USD 7.738

7.750 186,000,000.000
288,000.000

7.751 186,024,000
312,000.00