Juarez, Balance Sheet (12/31/2009) Exchange rate ($)

Euro 01-Jan-10 1.000

Assets Average for the month of January 1.000
Cash 400,000 Average 2010 (A) 0.950
Inventory 600,000 Rate when property and equipment were acquired 0.980
Total Assets 1,000,000 Rate when patent was acquired, Feb 1, 2010 (H) 0.970
Liabilites and Equity Rate when dividends were declared, Dec 1, 2010 0.920
Captial Stock 1,000,000 Average for the month of December 0.910
Total Liabilities and Equity 1,000,000 12/31/2010 ( C) 0.900
31-Dec-10
in Euro Translation Rate in USD Translation Ratein USD
Assets
Cash 550,000 0.900 495,000 0.900 495,000
Account Receivable 600,000 0.900 540,000 0.900 540,000
Inventory* 800,000 0.910 728,000 0.900 720,000
Property and equipment 2,080,000 0.980 2,038,400 0.900 1,872,000
Accumulated Depreciation (200,000) 0.980 (196,000) 0.900 (180,000)
Total Assets 3,830,000 3,605,400 0.900 3,447,000
Liabilites and Equity -
Account Payable 330,000 0.900 297,000 0.900 297,000
Long-term Debt 2,000,000 0.900 1,800,000 0.900 1,800,000
Total Liabilities 2,330,000 2,097,000 2,097,000
Captial Stock 1,000,000 1.000 1,000,000 1.000 1,000,000
Retained Earnings 500,000 Calulation 508,400 485,200
Cumulative translation adjustment (135,200)
Total Equity 1,500,000 1,508,400 1,350,000
Total Liabilities and Equity 3,830,000 3,605,400 3,447,000
 * Inventory is carried at FIFO cost, ending inventory was acquired evenly throughout the month of Decemeber
Income Statement Temporal Method Current Rate Method
2010 in Euro Translation Rate in USD Translation Rate in USD
Sales 8,000,000 0.950 7,600,000 0.950 7,600,000
Costs of goods sold 6,000,000 Caclulation 5,762,000 0.950 5,700,000
Selling and administrative expenses 500,000 0.950 475,000 0.950 475,000
Depreciation expense 200,000 0.980 196,000 0.950 190,000
Interest expense 180,000 0.950 171,000 0.950 171,000
Income before taxs 1,120,000 996,000 0.950 1,064,000
Income tax (r=25%) 280,000 0.950 266,000 0.950 266,000
Remeasurement Gain Calulation 91,200
Net income 840,000 821,200 0.950 798,000
Statement of Retained Earnings Temporal Method Current Rate Method
2010 in Euro Translation Rate in USD Translation Rate in USD
Retained earnings, 1/1/2010 -
Calulation from
Income
Net income 840,000 Statement 821,200 0.950 798,000
Less: Dividends 12/1/2010 (340,000) 0.92 (312,800) 0.920 (312,800)
Retained earnings, 31/12/2010 500,000 508,400 485,200

For Temporal Method

Calulation for COGs In Euro Translation Rate in USD
Beginning inventory 600,000 1.00 600,000
Plus: Purchases 6,200,000 0.95 5,890,000
Less: Ending Inventory (800,000) 0.91 (728,000)
Cost of goods solds 6,000,000 5,762,000