Exercise 13-4 On January 1, 2014, Trenten Systems, a U.S.-based company, purchased a controlling interest in Grant Management Consultants located in Zurich, Switzerland. The acquisition was treated as a purchase transaction. The 2014 financial statements stated in Swiss francs are given below. GRANT MANAGEMENT CONSULTANTS Comparative Balance Sheets January 1 and December 31, 2014 Jan. 1 Dec. 31 Cash and Receivables 19,800 55,500 Net Property, Plant, and Equipment 39,600 37,500 Totals 59,400 93,000 Accounts and Notes Payable 29,800 32,100 Common Stock 19,800 19,800 Retained Earnings 9,800 41,100 Totals 59,400 93,000 GRANT MANAGEMENT CONSULTANTS Consolidated Income and Retained Earnings Statement for the Year Ended December 31, 2014 Revenues 75,600 Operating Expenses including Depreciation of 2,100 francs 29,400 Net Income 46,200 Dividends Declared and Paid 14,900 Increase in Retained Earnings 31,300 Direct exchange rates for Swiss franc are: January 1, 2014 December 31, 2014 Average for 2014 Dividend declaration and payment date Dollars per Franc $0.5987 0.5321 0.5654 0.5810 (a) Translate the year-end balance sheet and income statement of the foreign subsidiary using the current rate method of translation. (Round answers to 0 decimal places, e.g. 5,125. Enter loss and debit cumulative translation adjustment using either a negative sign preceding the number e.g. -2,945 or parentheses e.g. (2,945).) Swiss Francs Translation Rate $ Consolidated Income and Retained Earnings Statement A Balance Sheet Total Total