Great Balls of Fire (GBF) Manufacturing is a British subsidiary of RJK, Inc., a US company. Required: Using the Temporal Method^ translate GBF's Balance Sheet and Statement of Income and Retained Earnings into U.S Dollars. Relevant exchange rates $ per Rates in effect when capital stock was issued, the long-term notes payale were issued, and fixed assets were acquired 1.85 December 31,20x0 % 1.48 Average for 20x1 : 1.53 December 31, 20x1 1.56 Rate for December 31,2000 inventory 1.50 Rate for December 31, 2001 inventory 1.45 Dividend rate, June 30, 20x1 1.55 Assume that taxes were paid evenly throughout the year Retained Earnings, December 31, 20x0 (temporal method)., $12,300 Balance Sheet, GBF Mfg., at December 31, 20x1, Pounds Sterling (in-thousands) Assets exchange Current Assets rate $ Cash and receivables ; 4,000 Inventory 4,500 Total 8,500 Fixed Assets Land . 3,000 Building (cost 10,000) , 7,000 Equipment (cost10,000) .' 4,000 - Total 14,000 Total Assets 2.500 Liabilities and Stockholders' Equity Current Liabilities 5,500 Long-term liabilities NbtesTayableT^r.7TT.\7"^^ ~ Deferred Income Taxes 2,500 5,500 Stockholders' Equity Capital Stock 5,000 Retained Earnings .6,500 11,500 Total Liabilities and Stockholders' Equity 22.500 (continued) Statement of Income and Retained Earnings, GBF Mfg., for 20x1, Pounds Sterling (in thousands) exchange rate Sales .- 18,000 Expenses Cost of Sales 9,000 Depteciation 5 3,000 Other expenses 2,100 Remeasurement Gain (Loss) -0- 14,100 Income before taxes 3,900 Income taxes 1,900 Net Income 2,000 Retained Earnings, December 31, 20x0 5,000 7,000 Dividends , 500 Retained Earnings, December 31, 20x1 6.500 What is GBF's functional currency?