3 Balcan Ltd prepares its financial statements in its functional currency, the Brazilian real (R$). Samcun Bhd, a Malaysian company, acquired 75% of the equity of Balcan Ltd on 1 January 20x5. Given below are the financial statements of Balcan Ltd for the year ended 31 December 20x5. Statement of Profit or Loss and Other Comprehensive Income for the Year Ended 31 December 20x5 R$'000 Sales 112,000 Cost of sales (78,000) Gross profit 34,000 Expenses (14,500) Profit before tax 19,500 Tax (3,900) Profit after tax 15,600 Movement in retained profit Retained profit brought forward: 8,500 Retained profit for the year 15,600 Dividend (300) Retained profit carried forward 23,800 Statement of Financial Position as at 31 December 20x5 R$'000 Assets Property, plant and equipment Inventory Trade receivables Bank 39,100 9,900 10,000 6,900 65,900 Equity and liabilities Ordinary shares 10,000 Retained profit 23,800 33,800 Long-term loan 11,000 Trade payables 20,800 Dividend payable 300 65,900 Required: Translate the financial statements of Balkan Bhd into the Malaysian Ringgit given the following exchange rates: RM R$ 1 January 20x5 1.50 1 31 December 20x5 2.00 1 Average for 20x5 1.40 1 Average for 20x4 2.20 1