CASE MATERIAL The audit of Almax Company and its subsidiaries for the year ended June 30, 2018 was completed and the trial balance on the attached spreadsheet was prepared. Ruster is a domestic subsidiary and Voiles is a foreign subsidiary located in Montreal, Canada. Voiles conducts all of its transactions in Canadian Dollars, which constitute its functional currency. (1) Almax Company acquired 400,000 shares of Ruster Company common stock for $34,000,000 on 7/1/15. Any excess of purchase price over underlying book value was attributed 50% to property, plant and equipment with a 10-year life and 50% to goodwill. (2) Almax Company acquired all of Voiles Companys 800,000 shares of stock on 7/1/15 for $65,000,000. Any excess of purchase price over underlying book value was attributed 50% to property, plant and equipment with a 10- year life and 50% to goodwill. (3) Condensed balance sheets of Ruster and Voiles on 7/1/15 and 7/1/17 in U.S. dollars were as follows.

	Ruster Company		Voiles Company
	7/1/17	7/1/15	7/1/17	7/1/15
Current Assets	38,500,000	35,500,000	20,500,000	28,000,000
Property & Equip.	51,300,000	47,500,000	62,300,800	61,300,000
Current Liabilities	12,500,000	10,000,000	10,500,000	9,500,000
Bonds Payable	20,000,000	20,000,000	-	-
Common Stock ($50 par)	25,000,000	25,000,000	40,000,000	40,000,000
Retained Earnings	20,000,000	15,000,000	12,500,000	20,000,000

(4) Total dividends declared and paid during the 2017-2018 fiscal year were as follows:

Almax Company 2,400,000 Ruster Company 2,500,000 Voiles Company 800,000 (Pd 10/24/17 US Dollars) In addition to dividend payments, Almax Company and Ruster Company each declared dividends of $1 per share payable in July 2017. (5) On December 31, 2017 Almax sold equipment with a book value of $800,000 to Ruster for $1,000,000. Ruster depreciates equipment on the straight-line method over 10 years. (6) Almax Company consistently sells to its subsidiaries at prices that realize a gross profit of 25% on sales. Ruster and Voiles companies sell to each other and to Almax Company at cost. Prior to fiscal 2016 intercompany sales were negligible, but during 2017-2018 the following sales were made (in US Dollars).

	Total Sales	Included on Purchasers Inventory at 6/30/18
Almax Company to Ruster Company	17,200,000	2,000,000
Almax Company to Voiles Company	16,000,000	4,000,000
Ruster Company to Voiles Company	2,500,000	500,000
Ruster Company to Almax Company	2,800,000	800.000

(7) At 6/30/18

Almax Company owed Ruster Company 2,400,000 Ruster Company owned Voiles Company 1,600,000 Voiles Company owed Almax Company 1,200,000

REQUIRED: Prepare excel spreadsheets for the translation of the foreign subsidiary to U.S. dollars and the consolidation of all three companies. Your spreadsheets should make extensive use of formulas which automatically make calculations. Supporting schedules (such as intercompany profit schedules and purchase price allocations) should be shown on your spreadsheets and automatically carried into your solution. Suggestion: When doing the consolidation do it in financial statement format not trial balance

Almax Company
Trial Balances
June 30, 2018
	Almax Company (U.S. $)	Ruster Company (U.S. $)	Voiles Company ($ Canadian)
Cash	8,800,000	14,150,000	10,400,000
Accounts Rec.	10,600,000	14,670,000	13,812,000
Dividends Rec.	400,000	0	0
Inventories	13,750,000	16,300,000	18,300,000
Investment in Ruster	34,000,000	0	0
Investment in Voiles	65,000,000	0	0
Investment in 6% Ruster Bonds	15,000,000	0	0
Property Plant & Equip.	63,900,000	56,600,000	88,500,000
Accum. Depreciation	(40,200,000)	(22,500,000)	(51,115,000)
Accounts Payable	(20,800,000)	(10,640,000)	(10,230,000)
Dividends Payable	(1,200,000)	(500,000)	0
Bonds Payable	(55,000,000)	(20,000,000)	0
Capital Stock ($50 Par)	(60,000,000)	(25,000,000)	50,000,000
Dividends	3,600,000	3,000,000	1,000,000
Retained Earnings (7/1/17)	(31,420,000)	(20,000,000)	(16,667,000)
Sales	(294,850,000)	(155,000,000)	(230,000,000)
Gain on Sale of Equipment	(200,000)	0	0
Interest Income	(900,000)	0	0
Dividend Income	(3,200,000)	0	0
Cost of Goods Sold	250,000,000	119,160,000	189,000,000
Operating Expenses	41,100,000	28,000,000	37,000,000
Interest Expense	1,620,000	1,760,000	0