Group Exercise 1: Translation On 1/2/X7, Padre Corp. (a U.S. based company) formed a new subsidiary in Honduras, Sucursal Inc., with an initial investment of 150,000 Honduras Lempiras (HNL). Assume Sucursal: Purchases inventory evenly throughout 20X7. The ending inventory is purchased 11/30/X7. Uses straight-line depreciation on fixed assets. Declares and pays dividends on 11/30/X7. Purchased the fixed assets on 4/1/X7. Uses Lempiras as the functional currency. REQUIRED Prepare a schedule to translate Sucursals financial statements on 12/31/X7 to U.S. dollars. Exchange Rates 1/2/X7 0.0553 4/1/X7 0.0550 11/30/X7 0.0535 12/31/X7 0.0532 Average 0.0545 Account Honduras Rate U.S. Limpiras Dollars Cash 25,000 Accounts Receivable 60,000 Inventory 160,000 Note Receivable 25,000 Plant and Equipment 350,000 Cost of Goods Sold 160,000 Depreciation Expense 10,000 Other Expenses 90,000 Dividends 80,000 Total Debits 960,000 Accumulated Depreciation 10,000 Accounts Payable 60,000 Bonds Payable 180,000 Mortgage Payable 230,000 Common Stock 150,000 Sales 330,000 Total Credits 960,000