Jambaara Inc., an American company, established ownership in a subsidiary operating in Japan on 4 April 2008 by subscribing to shares in cash when the exchange rate was 13 to the SUS. The balance sheet and income statement of the subsidiary for the year of 2009 follow: Income Statement 450.000 360,000 90.000 Sales Revenue -Cost of Goods Sold Gross Profit Other Expenses Distribution Expense Cleaning Expenses Supplies Expense Interest Expense Electricity Expense Insurance Expense Wages & Salaries Expense Depreciation Expense: Furniture & Fixtures Depreciation Expense: Buildings Depreciation Expense: Tools & Equipment Net Profit 2.000 3.000 5.000 5.000 13.000 7,000 4,000 3.000 5.000 2.000 41,000 Balance Sheet Assets Cash 57,000 Accounts Receivables 12,000 Notes Receivable 15,000 Inventory 40,000 Buildings 180.000 Tools & Equipment 40,000 Furniture & Fixtures 130,0001 Accumulated Depreciation: Building (15.000) Accumulated Depreciation: Fumiture & Fixtures (8,000) Accumulated Depreciation: Equipment (10,000) Total Net Assets 441.000 Liabilities & Stockholders' Equity Liabilities: Notes Payable 30,000 Accounts Payable 15,000 Bonds Payable 55,000 Total Liabilities 100,000 Stockholders' Equity: Share Capital 300,000 I+Retained Earnings 41,000 Total Stockholders' Equity 341,000 Total Liabilities & Stockholders' Equity 441,0001 Exchange Rates: to SUS April 4 (when shares sold) 13 Average for the year 11 December 31 10 When Buildings and Furniture purchased When Land purchased 12 When Equipment Purchased 11 When Inventory Purchased 13 9 Required: Translate using the Monetary Non-Monetary method