Translation of financial statements A U.S.-based MNC has a subsidiary in France (local currency, euro, €). The balance sheet and income statement of the subsidiary follow. Assume that on December 31, 2019, the exchange rate is US$1.20/€. Assume that the local (euro) figures for the statements remain the same on December 31, 2020. Calculate the U.S. dollar-translated figures for the two ending time periods, assuming that between December 31, 2019, and December 31, 2020, the euro has appreciated against the U.S. dollar by 6%.

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Translation of Income Statement December 31, 2019 December 31, 2020 Euro US$ US$ Sales 30,000 Cost of goods sold Operating profits 30,000 30,000 29,750 250 30,000 30,000 Translation of Balance Sheet December 31, 2019 December 31, 2020 Assets Euro US$ US$ Cash 40 Inventory 300 Plant and equipment (net) 30,000 30,000 160 30,000 Total 500 30,000 Liabilities and stockholders' equity Debt 240 Paid-in capital 200 Retained earnings 60 30,000 30,000 30,000 Total 500 30,000