Background: Company XYZ is a multinational corporation based in the United States that operates several subsidiaries abroad. One of its subsidiaries is located in Canada and conducts transactions in Canadian dollars (CAD). Each quarter, Company XYZ evaluates its foreign currency transactions for spot exchange rate fluctuations and reporting in US dollars (USD). In the most recent quarter, the spot exchange rate moved from 1.25 to 1.30 CAD for 1 USD.

Question: If Company XYZ had a payable of 50,000 CAD to settle at the end of the quarter, what will be the effect of the exchange rate movement on Company XYZ's financial statements?