Part A (10 marks) Oak Limited is an Australian manufacturer of Merino wool sweaters. To expand their business, Oak Limited looked to foreign acquisitions to increase their market share. Therefore, on 1 July 2017, Oak Limited acquired 100% of Redwood Limited, a retailer of woollen garments which was incorporated in the United States. The net assets of Redwood Limited on that date consisted of: US$ Share capital 120 000 General reserve 10 000 Retained profits 50 000 Total equity 180 000 The relevant exchange rates for the period are as follows: US$1 = A$ 1 July 2017 1.50 Average for year 2017/2018 1.42 30 September 2017 1.47 Average (July 17 - December 17) 1.45 31 December 2017 1.40 Average (January 18 - June 18) 1.35 30 June 2018 1.30 Average for June 2018 1.37 31 July 2018 1.38 Additional information relating to Redwood Limited: a) Sales are seasonal and do not occur evenly throughout the year. 60% of total sales are generated in the first six months from July to December and the balance from January to June. b) All expenses occur evenly throughout the year, except for closing inventory, which was purchased on 30 June 2018, and interest on the bank loan, which is paid semi-annually (an amount of US$2,000) on 31 December and 30 June each year. c) The dividend was paid on 30 September 2017 and the dividend declared on balance date and will be paid in July 2018. d) An additional item of equipment was purchased on 30 September 2017 for US$20,000. No other items of property, plant and equipment were purchased or sold during the year. All plant and equipment are depreciated on a straight-line basis at the rate of 20% p.a. e) Land was purchased on 31 December 2017 for US$45,000. Required: The trial balance of Redwood Limited is presented on pages 13 and 14 of this paper. The functional currency is considered to be Australian Dollars (AUD$). Prepare the translation of the 30 June 2018 financial statements of Redwood Limited (in US$) into Australian Dollars