Assume that our company (U.S. firm) owns a subsidiary operating in France. The subsidiary has adopted the Euro () as its functional currency. Following are the subsidiary's financial statements (in ) for the most recent year: Subsidiary (in ) Income statement: Sales Cost of goods sold Gross Profit Operating expenses Depreciation Remeasurement gain or loss Net income 8,000,000 (5,100,000) 2,900,000 (1,490,000) (405,000) 1,005,000 Statement of retained earnings: BOY retained earnings Net income Dividends Ending retained earnings 4,615,000 1,005,000 (118,000) 5,502,000 Balance sheet: Assets Cash Accounts receivable Inventory PPE, net Total Assets 2,050,100 2,076,000 1,866,000 4,790,900 10,783,000 Liabilities and Stockholders' Equity Current Liabilities Long-term Liabilities Common Stock APIC Retained Earnings Total Liabilities & Equity 1,365,100 2,645,900 350,000 920,000 5,502,000 10,783,000 Our subsidiary also reports the following additional financial statement information: Beginning inventory Purchases Ending inventory Cost of Goods Sold In Euros () 1,927,000 5,093,000 (1,866,000) 5,100,000 Land Building Accumulated Depreciation-Building Equipment Accumulated Depreciation-Equipment PPE, net 1,890,900 3,500,000 (1,750,000) 2,300,000 (1,150,000) 4,790,900 Depreciation expense-Building Depreciation expense-Equipment Depreciation expense 175,000 230,000 405,000 The relevant exchange rates for the $US value of the Euro () are as follows: BOY (1/1) Rate EOY (12/31) rate Avg. rate Dividend rate $1.30 $1.40 $1.35 $1.38 Historical rates: Beginning inventory Land Building Equipment Historical rate (Common Stock and APIC) $1.30 $0.60 $0.60 $0.62 $0.50 Required: Remeasure the subsidiary's income statement, statement of retained earnings, and balance sheet into $US for the current year (assume that the BOY Retained Earnings is $3,462,510). Use the template provided below. If needed, you can insert new rows. For some accounts, you need to covert multiple translation rates (e.g. CGS or depreciation). For those accounts, please show your work at the end the template. Subsidiary (in ) Translation Rate Subsidiary (in $) Income statement: Sales Cost of goods sold Gross Profit Operating expenses Depreciation Remeasurement gain or loss Net income Statement of retained earnings: BOY retained earnings Net income Dividends Ending retained earnings Subsidiary (in ) Translation Rate Subsidiary (in $) Balance sheet: Assets Cash Accounts receivable Inventory PPE, net Total Assets Liabilities and Stockholders' Equity Current Liabilities Long-term Liabilities Common Stock APIC Retained Earnings Total Liabilities & Equity