AnnSonia Inc., a Barbadian company, operates a 100%-owned Trinidadian subsidiary, Vilma-C Corporation. The Barbadian dollar is the functional currency of the subsidiary. Financial statements for the subsidiary for the fiscal year-end December 31, 2019, are as follows: Vilma-C Corporation Income Statement TnT $ Sales Cost of Goods Sold $ 780,000 -$ 348,000 Gross profit Depreciation Selling and Admin. Expenses Total operating expenses $ 432,000 -$ 86,400 $ -$ 186,000 $ -$ 272,400 Income before interest and taxes $ 159,600 Income Taxes -$ 31,920 Net Income $ 127,680 Vilma-C Corporation Balance Sheet TnT $ TnT $ Current Assets Current Liabilities Cash $ 186,000 Notes Payable $ 93,600 Accts. Rec. $ 205,200 Accts. Payable $ 198,000 Inventories $ 342,000 Other Current Liab. $ 61,200 $ 733,200 $ 352,800 Fixed Assets Long-term Liab. (issued $ July 1, 2017) $ 300,000 Equipment $ 453,600 Stockholders Equity $ Land and Buildings $ 600,000 Common Stock $ 840,000 Total Fixed Assets $ 1,053,600 Retained Earnings $ 294,000 Total $ 1,786,800 Total $ 1,786,800 Other Information: Other Information: 1. Equipment costing $ 408,000 was acquired July 1, 2017, and $45,600 was acquired June 30, 2019. Depreciation for the period was as follows: Equipment Equipment 2017 acquisitions 2019 acquisitions $ 79,200 $ 7,200 2. The beginning inventory was $372,000 acquired during the last quarter of 2018. The inventory is valued on a FIFO basis. Purchases and the ending inventory were acquired evenly throughout the period. Dividends were paid by the subsidiary on June 30 amounting to $187,200. 3. 4. Sales were made and all expenses were incurred uniformly throughout the year. 5. The retained earnings at the beginning of the year in TnT$ were $ 353,520 6. Exchange rates for the pound on various dates were: July 1, 2017 $1.29 Jan. 1 2019 $1.25 June 30, 2019 $1.24 Dec. 31 2019 $1.21 Average for 2019 $1.23 Last quarter 2018 $1.27 Required: You are required to prepare the translated financial statements of Vilma-C Corporation using the temporal method. Vilma-C Corporation Statement of Income and Retained Earnings For the year ended December 31, 2019 Current Assets Cash $186,000 Accts. Rec. $205,200 Inventories $342,000 Total current assets $733,200 Fixed Assets Equipment $453,600 Land and Buildings $600,000 Vilma-C Corporation Balance Sheet $ Total Fixed Assets $1,053,600 Total $1,786,800 Current Liabilities Notes Payable $93,600 Accts. Payable $198,000 $ Other Current Liab. $61,200 $ Total current liabilities $352,800 $ $ $ $ $ Total current liabilities $352,800 Long-term Liab. (issued July 1, 2012) $300,000 $ Stockholders Equity Common Stock $ $840,000 $ $ Retained Earnings $294,000 Total $1,786,800