Dove Corporation of Toronto acquired 100% of the outstanding common shares of Astral company of Libya on January 1 of Year 7. On this date, the fair values of Astral company's identifiable assets and liabilities were equal to their carrying amounts. Astrals financial statements for the year ended December 31, Year 9 are presented as follows:

BALANCE SHEET
At December 31, Year 9
Cash and cash equivalents	LYD	862,300
Accounts receivable		751,300
Inventory		899,300
Plant and equipment (net)		1,601,300
	LYD	4,114,200
Accounts payable	LYD	806,300
Notes payable		201,300
Common shares		1,001,300
Retained earnings		2,105,300
	LYD	4,114,200

INCOME STATEMENT
For the year ended December 31, Year 9
Sales	LYD	6,207,300
Inventory, Jan. 1		1,422,300
Purchases		3,939,300
Inventory, Dec. 31		(899,300)
Depreciation expense		201,300
Other expenses		505,300
		5,168,900
Profit	LYD	1,038,400

Additional Information

Exchange rates

January 1, Year 7	LYD1	=	$0.75
January 1, Year 8	LYD1	=	$0.53
Average for Year 8	LYD1	=	$0.55
Sep. 30, Year 9	LYD1	=	$0.63
Dec. 31, Year 9	LYD1	=	$0.66
Average for Year 9	LYD1	=	$0.59

Additional Information:

Astral Company declared and paid dividends on September 30, Year 9.

The inventories on hand on December 31, Year 9, were purchased when the exchange rate was LYD1 = $0.64.

All inventory on hand at the beginning of Year 9 were purchased evenly in Year 8.

The plant and equipment were purchased on January 1, Year 8 and are being amortized on a straight line basis over its estimated useful life of 10 years.

All sales and purchases and other expenses occurred evenly throughout the year.

On January 1, Year 9, the retained earnings of Astral Company was LYD 1,964,300 which amounted to $1,041,300 Canadian dollars.

Required:

(a) Assume that Astrals functional currency is the Canadian dollar, prepare translated financial statements for Year 9. (Hint: Prepare the balance sheet first and your retained earnings number will be a plug. Use the translated retained earnings to prepare the retained earnings statement and your profit figure will be a plug.) (Round the Rate answers to 2 decimal places. Exchange gain, if any, should be entered as positive value, and Exchange loss, if any, should be entered with a minus sign. Input all other amounts as positive values. Omit currency symbol in your response.)

Balance Sheet - December 31, Year 9
Cash and cash equivalents	LYD	862,300			$
Accounts receivable		751,300
Inventory		899,300
Plant and equipment (net)		1,601,300
	LYD	4,114,200			$
Accounts payable	LYD	806,300			$
Notes payable		201,300
Common shares		1,001,300
Retained earnings		2,105,300		Plug
	LYD	4,114,200			$

Retained Earnings Statement Year 9
Bal. Jan. 1	LYD	1,964,300		given	$
Net income		1,038,400		plug
		3,002,700
Dividends		897,400
Closing retained earnings	LYD	2,105,300		B/S above	$

Income Statement - Year 9
Sales	LYD	6,207,300			$
Cost of goods sold		4,462,300		Note 1
Depreciation expense		201,300
Other expenses		505,300
(Click to select) Exchange gain Exchange loss
		5,168,900
(Click to select) Net income Net loss	LYD	1,038,400			$

(b) Assume that Astrals functional currency is the Libyan dinar, prepare translated financial statements for Year 9 if the translated retained earnings at January 1, Year 9 under the presentation currency translation method is $1,231,300 Canadian dollars and there was no prior balance in Accumulated Other Comprehensive Income. (Hint: Prepare the income statement first and then the statement of retained earnings. Use the translated retained earnings to prepare the balance sheet and the exchange gain or loss in OCI will be a plug.) (Round the Rate answers to 2 decimal places. Exchange gain, if any, should be entered as positive value, and Exchange loss, if any, should be entered with a minus sign. Input all other amounts as positive values. Omit currency symbol in your response.)

Income Statement - Year 9
Sales	LYD	6,207,300			$
Cost of goods sold		4,462,300
Depreciation expense		201,300
Other expenses		505,300
		5,168,900
(Click to select) Net income Net loss	LYD	1,038,400			$

Retained Earnings Statement Year 9
Bal. Jan. 1	LYD	1,964,300		given	$
Net income		1,038,400
		3,002,700
Dividends		897,400
Closing retained earnings	LYD	2,105,300		B/S above	$

Balance Sheet - December 31, Year 9
Cash and cash equivalents	LYD	862,300			$
Accounts receivable		751,300
Inventory		899,300
Plant and equipment (net)		1,601,300
	LYD	4,114,200			$
Accounts payable	LYD	806,300			$
Notes payable		201,300
Common shares		1,001,300
Retained earnings		2,105,300		From RE
(Click to select) OCI - Exchange gain OCI - Exchange loss				Plug
	LYD	4,114,200			$