1. Summarize the impact of foreign exchange rates on the company’ s financial statements. What risks do foreign exchange rates pose?
2. What are the two methods used to translate financial statements and how does the functional currency play a role in determining which method is used?
3. Compose a hypothetical example to demonstrate the translation process using the two methods. Ensure all information is entered accurately.
Guidelines for Submission: Your report must be submitted as a 2- to 3-page Microsoft Word document with double spacing, 12-point Times New Roman font, one-inch margins, and at least two sources( in addition to your textbook) cited in APA format. Your accompanying spreadsheets must be submitted as Microsoft Excel files.