Gramado Company was created as a wholly owned subsidiary of Porto Corporation (a US based company) on January 1, 2020 On that date, Porto invested $50,000 in Gramados capital stock Given the exchange rate on that date of 0 84 Cruzeiro (Cz) per USD Gramados opening balance sheet (in Cz) was as follows Balance Sheet January 1, 2020 Cz Cz Cash Inventory 20,000 22,000 Capital Stock 42,000 Total Assets 42,000 Total liabilities and Equity 42,000 Relevant USD exchange rates for the Cz for Years 1 and 2 are as follows January 1, 2020 Average for 2020 Rate when PPE were acquired and long term debt was incurred on Jan 10, 2020 Rate when capital was increased Feb 25, 2020 Rate when dividends were declared Dec 1, 2020 Average for the month of December 2020 December 31, 2020 0 84 Cz $ 0 80 Cz $ 0 82 Cz $ 0 83 Cz $ 0,78 Cz $ 0 76 Cz $ 0 75 Cz $ Gramados Cz denominated financial statements for the year ended December 31, 2020 are as follows Income statement 2020 Cz Sales 540,000 COGS (310,000) Selling and administrative expenses (93,000) Depreciation expense (10,000) Interest expense (5,000) Income before tax 122,000 Income taxes (40,000) Net income 82,000 Statement of Retained Earnings 2020 Cz Retained earnings, 1 1 2020 0 Net income 82,000 Dividends (declared on 1 12 2020) (20,000) Retained earnings, 12 31 2020 62,000 Balance sheet December 31, 2020 Cz Cash 30,000 A R 20,000 Inventory (1) 72,000 Plant and equipment 100,000 Less acc depn (10,000) Total asset 2 1 2,000 Account payable 30,000 Long term Debt 65,000 Capital stock (2) 55,000 Retained earnings, 12 31 2020 62,000 Total liabilities and stockholders equity 2 1 2,000 Additional information Inventory is carried at FIFO cost Opening inventory was purchased on Jan 1, 2020 Ending inventory was acquired evenly throughout the month of December 13,000 Cz additional capital was raised on Feb 25, 2020 Required Translate Gramado Cz denominated financial statements into USD, assuming that Cz is the primary currency that Gramado uses in its day to day operations

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Gramado Company was created as a wholly owned subsidiary of Porto Corporation (a US based company) on January 1, 2020. On that date, Porto invested

Gramado Company was created as a wholly owned subsidiary of Porto Corporation (a US based company) on January 1, 2020. On that date, Porto invested $50,000 in Gramados capital stock. Given the exchange rate on that date of 0.84 Cruzeiro (Cz) per USD. Gramados opening balance sheet (in Cz) was as follows:

	Balance Sheet January 1, 2020
	Cz		Cz
Cash Inventory	20,000 22,000	Capital Stock	42,000
Total Assets	42,000	Total liabilities and Equity	42,000

Relevant USD exchange rates for the Cz for Years 1 and 2 are as follows:

January 1, 2020

Average for 2020

Rate when PPE were acquired and long-term debt was incurred on Jan 10, 2020

Rate when capital was increased Feb 25, 2020

Rate when dividends were declared. Dec 1, 2020

Average for the month of December 2020

December 31, 2020

0.84 Cz/$ 0.80 Cz/$

0.82 Cz/$

0.83 Cz/$ 0,78 Cz/$

0.76 Cz/$

0.75 Cz/$

Gramados Cz denominated financial statements for the year ended December 31, 2020 are as follows:

Income statement 2020

	Cz
Sales	540,000
COGS	(310,000)
Selling and administrative expenses	(93,000)
Depreciation expense	(10,000)
Interest expense	(5,000)
Income before tax	122,000
Income taxes	(40,000)
Net income	82,000

Statement of Retained Earnings 2020

	Cz
Retained earnings, 1/1/2020	0
Net income	82,000
Dividends (declared on 1/12/2020)	(20,000)
Retained earnings, 12/31/2020	62,000

Balance sheet

December 31, 2020

	Cz
Cash	30,000
A/R	20,000
Inventory (1)	72,000
Plant and equipment	100,000
Less: acc. depn	(10,000)
Total asset	212,000
Account payable	30,000
Long-term Debt	65,000
Capital stock (2)	55,000
Retained earnings, 12/31/2020	62,000
Total liabilities and stockholders equity	212,000

Additional information:

Inventory is carried at FIFO cost. Opening inventory was purchased on Jan 1, 2020. Ending inventory was acquired evenly throughout the month of December.
13,000 Cz additional capital was raised on Feb 25, 2020

Required:

Translate Gramado Cz denominated financial statements into USD, assuming that Cz is the primary currency that Gramado uses in its day-to-day operations.