Crab Beach Systems, a U.S. multinational producer of computer hardware, has subsidiaries located throughout the world. The company recently received year-end financial statements from its Swiss subsidiary, Doghead Technology. Doghead was purchased by Crab Beach on January 1, 2010. Doghead's financial statements are prepared and submitted to Crab Beach headquarters in Swiss francs. The accountant in charge of translating the financial statements has been unable to locate last year's translated financial statements. Instead, the only data available from last year are the financial statements prepared in francs. Doghead's adjusted trial balances as of December 31, 2010 and 2011, in Swiss francs, are as follows:

Relevant exchange rates for 2011 and 2010 are as follows. The numbers shown are the U.S. dollar equivalent of one franc.

Instructions: Using the information given, prepare a translated income and retained earnings statement and balance sheet, in U.S. dollars, for Doghead Technology for2011.

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Trial Balance Dec. 31, 2011 Trial Balance Dec. 31, 2010 Cash Accounts Receivable nventory Equipment Cost of Goods Sold Expenses Dividends 925,000 1.875,000 2.115,000 1,025.000 7.985.000 4.234.000 900,000 750,000 1.215.000 1,850,000 975,000 6,505,000 3,156,000 500,000 Total debits. Accounts Payable Long-Term Debt Capital Stock Retained Earnings (balance at beginning of year) Sales 19,059,00 2.100,000 000,000 1.200,000 640,000 14.119,000 19,059,000 14.951,000 1825,000 1,125.000 200,000 301,000 10,500,000 14,951,000 Total credits 2011 2010 January I Date of dividend payment Average rate for the year December 31 $0.196 $0.175 0.188 0.210 0.178 0.228 0.196 0.205