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Tristan​ Narvaja, S.A.​ (B).  Tristan​ Narvaja, S.A., is the Uruguayan subsidiary of a U.S. manufacturing company....

Tristan​ Narvaja, S.A.​ (B).  Tristan​ Narvaja, S.A., is the Uruguayan subsidiary of a U.S. manufacturing company. Its balance sheet for January 1 is shown in the popup​ window.The January 1 exchange rate between the U.S. dollar and the peso Uruguayo​ ($U) is ​$U25​/$. Determine Tristan​ Narvaja's contribution to the translation exposure of its parent on January​ 1, using the current rate method.

Assets       Liabilities and Net Worth  
Cash   70,000   Current liabilities   20,000
Accounts receivable   140,000   Long-term debt   70,000
Inventory   110,000   Capital stock   270,000
Net plant & equipment   240,000   Retained earnings   200,000
   560,000       560,000

a. Using the current rate​ method, what is Tristan​ Narvaja's contribution to the translation exposure of its parent on January​1st? $U___ (Round to the nearest peso​ Uruguayo.)

b. What is Tristan​ Narvaja's contribution to its​ parent's translation loss if the exchange rate on December 31st is ​$U28​/$?​$__ (Round to the nearest​ dollar.)

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jeff jeffy answered 1 year ago
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