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An entity commenced business on January 1, 2019, with an opening share capital of $4 million. The income statement and closing balance sheet follow. Income
An entity commenced business on January 1, 2019, with an opening share capital of $4 million. The income statement and closing balance sheet follow. Income Statement for the year ended December 31, 2019 (all amounts in $million) Revenue Cost of sales Gross profit Distribution costs Administrative expenses Profit before tax Tax expense Profit for period 104 -60 44 -181 -2 24 -8 16 The balance sheet on December 31, 2019 (all amounts in $million) Statement. Share capital Retained earnings Total Equity Trade payables Total liabilities Detailed Total 4 16 20 8 Trade payables Total liabilities Total Equity and liabilities 8 8 28 Land (no depreciable) acquired December 31, 2019 16 Inventories 8 Trade receivables 4 Total assets 28 The functional currency is the dollar, but the entity wishes to present its financial statements using the euro as its presentational currency. The entity translated the opening share capital at the closing rate. The exchange rates in the period were $1 = January 1, 2019 1 December 31, 2019 2 Average rate 1.5 Required: Translate the financial statements from the functional currency to the presentational currency
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