Aviola Hotels, located in the country of South Sudan is a wholly owned subsidiary of Enterprise Hotels Management, a Canadian company with headquarters in Toronto Ontario. The financial statements of Aviola for the year that ended December 31, Year 4, are presented below: STATEMENT OF FINANCIAL POSITION Cash Accounts receivable Inventory Plant assets Accumulated amortization Accounts payable Note payable Ordinary share capital Retained earnings At December 31 Year 4 Year 3 SSP 1,950,000 SSP 300,000 900,000 1,250,000 1,450,000 1,500,000 14,500,000 (1,450,000) SSP 17,950,000 SSP 1,282,500 4,000,000 6,000,000 6,667,500 SSP 17,950,000 14,500,000 (725,000) SSP16,225,000 SSP 2,725,000 4,000,000 6,000,000 3,500,000 SSP16,225,000 Sales INCOME STATEMENT For the year ended December 31, Year 4 Cost of goods sold Selling and administrative expenses Amortization expense Interest expense Income taxes Profit SSP12,500,000 4,500,000 1,375,000 725,000 500,000 1,732,500 4,332,500 SSP 3,667,500 Additional Information Inventory held by Aviola at the end of Year 4 was purchased on November 30 while the inventory held at the end of Year 3 was purchased on October 30, Year 3. Plant assets relates to buildings and equipment that were acquired on January 1, Year 1 when the exchange rate was $1: SSP100. Aviola declared and paid dividends on June 30, Year 4. Relevant exchange rates are as follows: October 30, Year 3 $1 = SSP107 December 31, Year 3 $1 = SSP104 June 30, Year 4 $1 = SSP110 November 30, Year 4. $1 SSP111 December 31, Year 4 $1 SSP116 Average for Year 4. $1 SSP110