EXHIBIT 11.6 Ganado Europe's Translation Loss After Depreciation of the Euro: Temporal Method January 2, 2016 Exchange Rate (US$Sleuro) 1.2300 December 31, 2015 Translated Accounts (US$) $1,230,000 3,567,000 Exchange Rate (US$leuro) 1.6300 Translated Accounts (US$) $1,630,000 In Euros (€) 1,000,000 Assets Cash Accounts receivable 2,900,000 1.2300 1.6300 4,727,000 3,753,000 Inventory Net plant and equipment 3,000,000 1.2510 3,753,000 1.2510 6,545,000 $15,095,000 1.3090 1.3090 5,000,000 11,900,000 6,545,000 Total $16,655,000 Liabilities and Net Worth Accounts payable 800,000 1.2300 $984,000 1.6300 $1,304,000 Short-term bank debt 1,600,000 1.2300 1,968,000 1.6300 2,608,000 1,900,000 Long-term debt Common stock Retained earnings Translation gain (loss) 1.2300 2,337,000 1.6300 3,097,000 3,010,700 6,795,300 1.3090 1.3090 3,010,700 6,795,300 2,300,000 5,300,000 1.2724 (a) 1.2724 (b) (c) $16,655,000 Total 11,900,000 $15,095,000 (a) Dollar retained earnings before depreciation are the cumulative sum of additions to retained earnings of all prior years, translated to exchange rates in each year. (b) Translated into dollars at the same rate as before depreciation of the euro. (c) Under the temporal method, the translation loss would be closed into retained earnings through the income statement rather

Exercise 11-1 (Static) Exchange Rates LO 11-1 Suppose the direct foreign exchange rates in U.S. dollars are 1 British pound = 1 Canadian dollar = Required: a. What are the indirect exchange rates for the British pound and the Canadian dollar? b. How many pounds must a British company pay to purchase goods costing $8,000 from a U.S. company? c. How many U.S. dollars must be paid for a purchase costing 4,000 Canadian dollars? Required A $ 1.60 $ 0.74 Complete this question by entering your answers in the tabs below. Required B Required C What are the indirect exchange rates for the British pound and the Canadian dollar? Note: Round your answers to 4 decimal places. 1 USD 1 USD Answer is complete but not entirely correct. € 0.6250 British pounds $ 1.3510 Canadian dollars

provide correct answer need help!!

A3