Use the following financial statement(s) to answer the questions below:
Balance sheet of XYZ - Canada
|
|
|
|
|
Cash
|
CD
|
1000000
|
Debt
|
5000000
|
AR
|
|
3000000
|
Equity
|
6000000
|
FA
|
|
5000000
|
|
|
Inventory
|
|
2000000
|
|
|
|
CD
|
11000000
|
CD
|
11000000
|
|
|
|
|
|
Dollar Translation on May 31
|
|
|
CD2=$1
|
|
Cash
|
CD
|
500000
|
Debt
|
2500000
|
AR
|
|
1500000
|
Equity
|
3000000
|
FA
|
|
2500000
|
|
|
Inventory
|
|
1000000
|
|
|
|
CD
|
5500000
|
CD
|
5500000
|
Suppose that in June the exchange rate becomes CD4 = 1$. Construct this organization's June financials. Once financials are translated, elaborate upon why this information is important for managers to assess. Finally, how to changes in key metrics on the financial statements firm value? In your answer, please reference economic exposure.