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December 31, 2015 January 2, 2016 Assets In Euros () Exchange Rate (US$/euro) Translated Accounts (US$) Exchange Rate (US$/euro) Translated Accounts (US$) Cash 1,600,000 1.2000 $ 1,920,000 1.0000 $ 1,600,000 Accounts receivable 3,200,000 1.2000 3,840,000 1.0000 3,200,000 Inventory 2,400,000 1.2000 2,880,000 1.0000 2,400,000 Net plant and equipment 4,800,000 1.2000 5,760,000 1.0000 4.800,000 Total 12,000,000 $14,400.000 $12,000,000 Liabilities and Net Worth Accounts payable 800,000 1.2000 $ 960,000 1.0000 $ 800,000 Short-term bank debt 1,600,000 1.2000 1,920,000 1.0000 1,600,000 Long-term debt 1,600,000 1.2000 1,920,000 1.0000 1,600,000 Common stock 1,800,000 1.2760 2,296,800 1.2760 2,296,800 Retained earnings 6,200,000 1.2000(a) 7,440,000 1.2000(b) 7,440,000 $ (136.800) $(1,736,800) Translation adjustment (CTA) Total 12,000,000 $14,400,000 $12,000,000 (a) Dollar retained earnings before depreciation are the cumulative sum of additions to retained earnings of all prior years, translated at exchange rates in each year. (b) Translated into dollars at the same rate as before depreciation of the euro. December 31, 2015 January 2, 2016 Assets In Euros () Exchange Rate (US$/euro) Translated Accounts (US$) Exchange Rate (US$/euro) Translated Accounts (US$) Cash 1,600,000 1.2000 $ 1,920,000 1.0000 $ 1,600,000 Accounts receivable 3,200,000 1.2000 3,840,000 1.0000 3,200,000 Inventory 2,400,000 1.2000 2,880,000 1.0000 2,400,000 Net plant and equipment 4,800,000 1.2000 5,760,000 1.0000 4.800,000 Total 12,000,000 $14,400.000 $12,000,000 Liabilities and Net Worth Accounts payable 800,000 1.2000 $ 960,000 1.0000 $ 800,000 Short-term bank debt 1,600,000 1.2000 1,920,000 1.0000 1,600,000 Long-term debt 1,600,000 1.2000 1,920,000 1.0000 1,600,000 Common stock 1,800,000 1.2760 2,296,800 1.2760 2,296,800 Retained earnings 6,200,000 1.2000(a) 7,440,000 1.2000(b) 7,440,000 $ (136.800) $(1,736,800) Translation adjustment (CTA) Total 12,000,000 $14,400,000 $12,000,000 (a) Dollar retained earnings before depreciation are the cumulative sum of additions to retained earnings of all prior years, translated at exchange rates in each year. (b) Translated into dollars at the same rate as before depreciation of the euro

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