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 .