Assume that our subsidiary reports the following financial statements in Brazilian Real (RS): Subsidiary in R$) Income statement: Sales Cost of goods sold Gross Profit Operating expenses Net income 2,000,000 (1,200,000) 800,000 410,000) Statement of retained earnings: BOY retained earnings Net income Dividends Ending retained earnings 978,500 390,000 39,000 1,329,500 Balance sheet: Assets Cash Accounts receivable Inventory PPE, net Total Assets 318,600 627,000 508,800 1,603,700 3,058,100 Liabilities and Stockholders' Equity Current Liabilities Long-term Liabilities Common Stock APIC Retained Earnings Total Liabilities & Equity 323,400 635,200 120,000 650,000 1,329,500 3,058,100 Also assume the following exchange rates (:RS): BOY Rate EOY rate Avg. rate PPE purchase date rate LTD borrowing date rate Dividend rate Historical rate (Common Stock and APIC) $0.60 $0.90 $0.80 $0.70 $0.83 $0.85 $0.65 Required: Translate the subsidiary's financial statements into $US using the current-rate method, assuming a BOY Retained Earnings balance of $680,900