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Panco, a U.S. entity, has a subsidiary, Sanco, located in a foreign country. Sanco's operations are concentrated in the country in which it is located

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Panco, a U.S. entity, has a subsidiary, Sanco, located in a foreign country. Sanco's operations are concentrated in the country in which it is located and are essentially independent of Panco. The economy of the foreign country is not highly inflationary. Sanco prepared the following shortened financial statements in its local currency, the FCU, for the fiscal year ended December 31, 20X8: Statement of Net Income and Comprehensive Income (20X8) FCU (in 000) Sales COGS Depreciation Expense Other Expenses Net Income Other Comprehensive Income 12,000 (4,000) (1,000) (3,000) 4,000 0 Retained Earnings (2038) Beginning Retained Earnings (end 20X7) Add: Net Income (2038) Deduct: Dividends (20X80 Ending Retained Earnings 6,000 4,000 (1,000) 9,000 Balance Sheet (12/31/20X8) Cash and Account Receivable Inventory Fixed Assets Total Assets 2,000 6,000 10,000 18,000 2,000 7,000 9,000 Liabilities Common Stock Ending Retained Earnings Subtotal Accumulated Other Comprehensive Income Total Liabilities plus Equity 18,000 0 18,000 The following exchange rates were available: Historic exchange rate when Sanco was established by Panco: 1 FCU = $1.200 Weighted average exchange rate for 20X8: 1 FCU = $1.300 Spot exchange rate at date dividend declared: 1 FCU = $1.290 Spot exchange rate at December 31, 20X8: 1 FCU = $1.310 F Answer the following four questions by selecting an answer from A to J below. a) What is the amount (in 000) of Sanco's common stock in U.S. dollars? b) What is the amount (in 000) of Sanco's Cash in U.S. dollars? c) What is the amount (in 000) of Sanco's Net Income in U.S. dollars? d) What is the amount (in 000) of Sanco's Inventory in U.S. dollars? A) B) D) F) G H 1) J) $0 $2,620 $5,200 $5,240 $7,000 $7,800 $7,860 $8,400 $9,030 $9,100 $9,170 None of the above

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