Please assist with the following

\fThe foreign subsidialy's income statement for Year 1 and balance sheet at December 31, Year 1, are as follows: INCOME STATEMENT For the Year Ended December 31, Year 1 Pounds (in thousands) Sales 15,000 Cost of goods sold 9,000 Gross prot 6,000 Selling and administrative expenses 3,000 Depreciation expense 1,000 Income before tax 2,000 Income taxes Net income 1,400 Retained earnings, \"1le 0 Retained earnings, 12f31le 1,400 BALANCE SHEET At December 31, Year 1 Pounds {in thousands) Cash 2,4 Inventolj.r 4,0 Property, plant, and equipment l Less: Accumulated depreciation {LUCIE} Total assets 15 ACID IEjurrent liabilities l Longterm debt 4,l} Contributed capital E Retained earnings 1,4 Total liabilities and stockholders' equity 15,4 As the controller for Palmerstown Company. you have evaluated the characteristics of the foreign subsidiary to determine that the pound is the subsidiary's functional currency. Required: 1. Use an electronic spreadsheet to translate the foreign subsidialy's nancial statements into U.S. dollars at December 31, Year 1. in accordance with U.S. GAAP. Insert a row in the spreadsheet after retained earnings and before total liabilities and stockholders' equity for the cumulative translation adjustment. Calculate the translation adjustment separately to verify the amount obtained as a balancing gure in the translation worksheet. 2. Use an electronic spreadsheet to remeasure the foreign subsidialy's nancial statements into U.S. dollars at December 31, Year 1. assuming that the U.S. dollar is the subsidiary's functional currency. Insert a row in the spreadsheet after depreciation expense and before income before taxes for the remeasurement gain (loss). 3. Prepare a report for the chief executive oicer of Palmerstown Company summarizing the differences that will be reported in the Year 1 consolidated nancial statements because the pound, rather than the U.S. dollar. is the foreign subsidiary's functional currency. In your report. discuss the relationship between the current ratio, the debttoequity ratio, and the prot margin calculated from the foreign currency nancial statements and from the translated U.S.- dollar nancial statements. Also, include a discussion of the meaning of the translated U.S.dollar amounts for inventory and for property, plant. and equipment