2 3 ON JANUARY 1, 2020 US CORP ESTABLISHED FOREIGN CORPORATION. FOLLOWING SUMMARIZES ACTIMTY FOR THE YEAR: 4 5 DATE TRANSACTION 6 7 8 9 EXCHANGE AMOUNT RATE 3,200,000 0.50 FC 3,000,000 0.50 FC 6,000,000 0.50 FC 1,000,000 0.50 FC 4,000,000 0.43 FC 1-Jan ESTABLISHED FOREIGN ENTITY FOR 5-Jan ISSUED LONG TERM DEBT 8-Jan PURCHASED PROPERTY, PLANT, EQUIP 10-Jan PURCHASED INVENTORY VARIOUS PURCHASED INVENTORY 10 11 12 AVERAGE RATE 13 14 15 16 ADDITIONAL INFORMATION: THE PROPERTY, PLANT AND EQUIPMENT IS DEPRECIATED OVER 10 YEARS STRAIGHT LINE FOREIGN CORPORATION VALUES INVENTORY ON FIFO BASIS ADDITIONAL EXCHANGE RATE INFORMATION FOR THE YEAR: AVERAGE EXCHANGE RATE DURING YEAR 0.45 FC EXCHANGE RATE AT DECEMBER 31, 2020 0.38 FC 17 18 19 20 FOREIGN CORPORATION'S INCOME STATEMENT AND BALANCE SHEET AT DECEMBER 31, 2020 IS: 21 22 23 24 25 INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2020 IN FOREIGN CURRENCY 26 27 28 29 30 31 SALES COST OF GOODS SOLD GROSS PROFIT SELLING EXPENSE DEPRECIATION EXPENSE INCOME BEFORE EXPENSE INCOME TAX NET INCOME RETAINED EARNINGS JAN 1, 2020 RETAINED EARNINGS DEC 31, 2020 5,000,000 3,000,000 2,000,000 400,000 600,000 1,000,000 300,000 700,000 0 700,000 32 33 34 35 36 37 38 39 BALANCE SHEET AT DECEMBER 31, 2020 IN FOREIGN CURRENCY 40 41 42 43 44 CASH INVENTORY PROPERTY, PLANT, EQUIPMENT LESS: ACCUMULATED DEPRECIATION TOTAL ASSETS 1,000,000 2,000,000 6,000,000 -600,000 8,400,000 45 46 47 48 49 50 CURRENT LIABILITIES LONG TERM DEBT CONTRIBUTED CAPITAL RETAINED EARNINGS TOTAL LIABILITIED AND STOCKHOLDER EQUITY 1,500,000 3,000,000 3,200,000 700,000 8,400,000 51 52 53 54 55 56 57 REQUIRED: 1 AS THE CONTROLLER FOR US CORP, YOU HAVE EVALUATED THE CHARACTERISTICS OF THE FOREIGN CORPORATION AND DETERMINED THAT THE FOREIGN CURRENCY IS FOREIGN CORPORATION'S FUNCTIONAL CURRENCY. DEVELOP AN EXCEL MODEL TO TRANSLATE FOREIGN CORPORATION'S FINANCIAL STATEMENTS INTO U.S. DOLLARS IN ACCORDANCE WITH U.S. GAAP 58 59 60