Gramado Company was created in Singapore as a wholly owned subsidiary of Porto Alegre Corporation on January 1, Year 1 . On that date, Porto Alegre invested $42,000 in Gramado's capital stock. There were no transactions involvine canital stock in Year 1 . Gramado's Sinoapore Dollar-denominated (SGD) The SGD is the primary currency that Gramado uses in its day-to-day operations. The SGD has steadily fallen in value against the dollar since Porto Alegre made the investment in Gramado on January 1, Year 1. Relevant exchange rates are as follows: Required: Use the template on the next page as a guide to translate Gramado company's Year 2 financial statements into U.S. dollars. 1 The year 1 ending balance of retained earnings is entirely the result of year 1 net incoms. Income Statement, Year Y2 Sales Cost of goods sold Gross profit Operating expenses Income before tax Income taxes Net income Statement of Retained Earnings Year Y2 Retained earnings, 1/1/Y2 Net income Dividends (Paid 12/1/ /2 ) Retained earnings, 12/31//2 Balance Sheet as of 12/31/Y2 Cash Receivables Inventory Plant and equipment Less: accumulated depreciation Total assets Labilities Capital stock Retained earnings, 12/31//2 Cumulative translation adjustment Total liabilities and stockholders' equity \begin{tabular}{|c|c|} \hline SGD & USD/SGD \\ \hline 540,000 & \\ \hline(310,000) & \\ \hline 230,000 & \\ \hline(108,000) & \\ \hline 122,000 & \\ \hline(40,000) & \\ \hline 82,000 & \\ \hline SGD & USD/SGD \\ \hline 154,000 & \\ \hline 82,000 & \\ \hline(20,000) & \\ \hline 216,000 & \\ \hline SGD & USD/SGD \\ \hline 50,000 & \\ \hline 100,000 & \\ \hline 72,000 & \\ \hline 300,000 & \\ \hline(70,000) & \\ \hline 452,000 & \\ \hline 186,000 & \\ \hline 50,000 & \\ \hline 216,000 & \\ \hline & \\ \hline 452.000 & \\ \hline \end{tabular} USD USD USD Gramado Company was created in Singapore as a wholly owned subsidiary of Porto Alegre Corporation on January 1, Year 1 . On that date, Porto Alegre invested $42,000 in Gramado's capital stock. There were no transactions involvine canital stock in Year 1 . Gramado's Sinoapore Dollar-denominated (SGD) The SGD is the primary currency that Gramado uses in its day-to-day operations. The SGD has steadily fallen in value against the dollar since Porto Alegre made the investment in Gramado on January 1, Year 1. Relevant exchange rates are as follows: Required: Use the template on the next page as a guide to translate Gramado company's Year 2 financial statements into U.S. dollars. 1 The year 1 ending balance of retained earnings is entirely the result of year 1 net incoms. Income Statement, Year Y2 Sales Cost of goods sold Gross profit Operating expenses Income before tax Income taxes Net income Statement of Retained Earnings Year Y2 Retained earnings, 1/1/Y2 Net income Dividends (Paid 12/1/ /2 ) Retained earnings, 12/31//2 Balance Sheet as of 12/31/Y2 Cash Receivables Inventory Plant and equipment Less: accumulated depreciation Total assets Labilities Capital stock Retained earnings, 12/31//2 Cumulative translation adjustment Total liabilities and stockholders' equity \begin{tabular}{|c|c|} \hline SGD & USD/SGD \\ \hline 540,000 & \\ \hline(310,000) & \\ \hline 230,000 & \\ \hline(108,000) & \\ \hline 122,000 & \\ \hline(40,000) & \\ \hline 82,000 & \\ \hline SGD & USD/SGD \\ \hline 154,000 & \\ \hline 82,000 & \\ \hline(20,000) & \\ \hline 216,000 & \\ \hline SGD & USD/SGD \\ \hline 50,000 & \\ \hline 100,000 & \\ \hline 72,000 & \\ \hline 300,000 & \\ \hline(70,000) & \\ \hline 452,000 & \\ \hline 186,000 & \\ \hline 50,000 & \\ \hline 216,000 & \\ \hline & \\ \hline 452.000 & \\ \hline \end{tabular} USD USD USD
