Using the data given, reconcile the cumulative translation adjustment (9 marks). Exchange ZAR Rate USD Sales 1,000,000 0.096 96,000 Cost of goods sold (600,000) 0.096 (57,600) Gross profit Depreciation expense Other operating expenses 400,000 38,400 (50,000) 0.096 (4,800) (150,000) 0.096 (14,400) Income before tax 200,000 19,200 Income taxes (90,000) 0.096 (8,640) Net income 110,000 10,560 Retained earnings, 1/1/Y1 Net income, Year 1 110,000 10,560 Dividends, 6/1/Y1 (20,000) 0.095 (1,900) Dividends, 12/1/Y1 (20,000) 0.105 (2,100) Retained earnings, 12/31/Y1 70,000 6,560 Cash 80,000 0.110 8,800 Receivables 150,000 0.110 16,500 Inventory 270,000 0.110 29,700 Plant and equipment 500,000 0.110 55,000 Less: accumulated depreciation (50,000) 0.110 (5,500) Total assets 950,000 104,500 Accounts payable 80,000 0.110 8,800 Long-term debt 500,000 0.110 55,000 Common stock 300,000 0.090 27,000 Retained earnings, 12/31/Y1 70,000 6,560 Cumulative translation adjustment 7,140 Total liabilities and stockholders' equity 950,000 104,500 Exchange Rates USD/ZAR January 1, Year 1 0.090 June 1, Year 1 0.095 Average for Year 1 0.096 November 15, Year 1 0.100 December 1, Year 1 0.105 December 31, Year 1 0.110