Crab Beach Systems, a U.S. multinational producer of computer hardware, has subsidiaries located throughout the world. The company recently received year-end financial statements from its Swiss subsidiary, Doghead Technology. Doghead was purchased by Crab Beach on January 1, 2014. Dogheads financial statements are prepared and submitted to Crab Beach headquarters in Swiss francs. The accountant in charge of translating the financial statements has been unable to locate last years translated financial statements. Instead, the only data available from last year are the financial statements prepared in francs. Dogheads adjusted trial balances as of December 31, 2014 and 2015, in Swiss francs, are as follows:

	Trial Balance Dec. 31, 2015	Trial Balance Dec. 31, 2014
Cash	925,000	750,000
Accounts Receivable	1,875,000	1,215,000
Inventory	2,115,000	1,850,000
Equipment	1,025,000	975,000
Cost of Goods Sold	7,985,000	6,505,000
Expenses	4,234,000	3,156,000
Dividends	900,000	500,000
Total debits	19,059,000	14,951,000
Accounts Payable	2,100,000	1,825,000
Long-Term Debt	1,000,000	1,125,000
Capital Stock	1,200,000	1,200,000
Retained Earnings (balance at beginning of year)	640,000	301,000
Sales	14,119,000	10,500,000
Total credits	19,059,000	14,951,000

Relevant exchange rates for 2015 and 2014 are as follows. The numbers shown are the U.S. dollar equivalent of one franc.

	2015	2014
January 1	$0.196	$0.175
Date of dividend payment	0.205	0.188
Average rate for the year	0.210	0.178
December 31	0.228	0.196

Instructions: Using the information given, prepare a translated income and retained earnings statement and balance sheet, in U.S. dollars, for Doghead Technology for 2015.