B. Based on inventory turnover, return on equity and return on assets, which currency translation method presents the best company result. Justify your answer with calculations.

1. You are an analyst reviewing the impact of three currency translation methods (current / non- current, monetary / non-monetary and temporal) on a Yen subsidiary operations of a parent company with a Dollar home currency. The following information has been gathered from company and market sources. Excerpts of company financial information: Yen Inventory value (Dec 31, 2018 Total Revenue(Jan 1 - Dec 31, 2018 Net income (Jan 1 - Dec 31 700 5,500 1,250 Yen Current yearPrior year Balance sheet 2500 1400 750 400 4500 9550 24.63 13.79 7.39 3.94 44.33 94.09 Accounts Receivable Inventor Prepaid expenses (@Nov 26, 2018 Fixed Assets (acq Feb 1, 2010 Total assets Liabilities Accounts Pavable Long-Term Debt (issued Mar 30, 2015 Total Liabilities Capital stock (@Feb 1, 2010 Retained earnings Total equit Total liabilities and equit Nov 26, 2018 1250 3000 4250 3000 2300 5300 9550 12.32 29.56 41.87 29.56 22.66 52.22 94.09 1. You are an analyst reviewing the impact of three currency translation methods (current / non- current, monetary / non-monetary and temporal) on a Yen subsidiary operations of a parent company with a Dollar home currency. The following information has been gathered from company and market sources. Excerpts of company financial information: Yen Inventory value (Dec 31, 2018 Total Revenue(Jan 1 - Dec 31, 2018 Net income (Jan 1 - Dec 31 700 5,500 1,250 Yen Current yearPrior year Balance sheet 2500 1400 750 400 4500 9550 24.63 13.79 7.39 3.94 44.33 94.09 Accounts Receivable Inventor Prepaid expenses (@Nov 26, 2018 Fixed Assets (acq Feb 1, 2010 Total assets Liabilities Accounts Pavable Long-Term Debt (issued Mar 30, 2015 Total Liabilities Capital stock (@Feb 1, 2010 Retained earnings Total equit Total liabilities and equit Nov 26, 2018 1250 3000 4250 3000 2300 5300 9550 12.32 29.56 41.87 29.56 22.66 52.22 94.09