Foreign operations 26-3G

Can anybody understand CFAI Practice Problem 3G for Reading 26 about foreign operations? I don’t understand why the firm “must have increased” its local currency investments in its foreign subs, while the reported foreign net assets in US$ have decreased. The reason given in the Solution is that the foreign net assets decrease of $5.4mio was reported after a total decline in the CTA $9.7mio ($6.4mio due to exchange rate changes and $3.2mio from the liquidation of the Swiss sub)??? How do the numbers work?