please calculate the bottom part B by red X. thank you
\begin{tabular}{|c|c|c|c|} \hline Income Statement: & In Euros. & \begin{tabular}{c} Translation \\ Rate \end{tabular} & \begin{tabular}{c} In \\ US Dollars \end{tabular} \\ \hline Sales & 61,125,000 & 1.21 & 1,361,250 \\ \hline Cost of goods sold & (675,000) & 1.21 & (816,750) \\ \hline Gross profit & 450,000 & & 544,500 \\ \hline Operating expenses & (292,500) & 1.21 & (353,925) \\ \hline Net income & 157,500 & & 190,575 \\ \hline \multicolumn{4}{|l|}{ Statement of Retained Earnings: } \\ \hline BOY retained earnings & 6590,625 & & 461,343 \\ \hline Net income & 157,500 & s. & 190,575 \\ \hline Dividends & (15,750) & 1.23 & (19,373) \\ \hline EOY retained earnings & 6732,375 & & 632,545 \\ \hline \multicolumn{4}{|l|}{ Balance Sheet: } \\ \hline \multicolumn{4}{|l|}{ Assets } \\ \hline Cash & 320,175 & 1.24s & 397,017 \\ \hline Accounts receivable & 261,000 & 1.24 & 323,640 \\ \hline Inventory & 335,250 & 1.24 & 415.710 \\ \hline Property, plant, and equipment (PPE), net & 620,100 & 1.24 & 768,924 \\ \hline Total assets & 61,536,525 & & 1,905,291 \\ \hline \multicolumn{4}{|l|}{ Liabilities and stockholders' equity } \\ \hline Current liabilities & 6190,800 & 1.24 & 236,592 \\ \hline Long-term liabilities & 444,600 & 1.24 & 551,304 \\ \hline Common stock & 75,000 & 1 & 75,000 \\ \hline APIC & 93,750 & 1 & 93,750 \\ \hline Retained earnings & 732375 & & 632,545 \\ \hline \end{tabular} Translation of financial statements Assume that your company owns a subsidiary operating in France. The subsidiary conducts most of its business activities in the European Economic Union and maintains its books in the Euro as its functional currency. The subsidiary's financial statements (in ) for the most recent year follow in part a. below: The relevant exchange rates ($;1) are as follows: For both parts a. and b. below, use a negative sign with answers to indicate a reduction. a. Translate the subsidiary's income statement, statement of retained earnings, balance sheet, and statement of cash flows into sUS (assume that the BOY Retained Earnings is $461,343 ). b. Compute the ending Cumulative Translation Adjustment directly, assuming a BOY balance of $273,564. \begin{tabular}{|c|c|c|c|} \hline Total assets & e1,536,525 & $ & 1,905,291 \\ \hline \multicolumn{4}{|l|}{ Liabilities and stockholders' equity } \\ \hline Current liabilities & 190,800 & 1.24$ & 236,592 \\ \hline Long-term liabilities & 444,600 & 1.24 & 551,304 \\ \hline Common stock & 75,000 & 1 & 75,000 \\ \hline APIC & 93,750 & 1 & 93,750 \\ \hline Retained earnings & 732,375 & & 632,545 \\ \hline Cumulative translation adjustment ^ & & & 316,100 \\ \hline Total liabilities and equity & 1,536,525 & & 1,905,291 \\ \hline \multicolumn{4}{|l|}{ Statement of Cash Flows: } \\ \hline Net income & 157,500 & 1.21$ & 190,575 \\ \hline Change in accounts receivable & (43,500) & 1.21 & (52,635) \\ \hline Change in inventories & (55,875) & 1.21 & (67,609) \\ \hline Change in current liabilities & 31,800 & 1.21 & 38,478 \\ \hline Net cash from operating activities & 689,925 & & 108,809 \\ \hline Change in PPE, net & (57,600) & 1.22 & (70,272) \\ \hline Net cash from investing activities & (57,600) & & (70,272) \\ \hline Change in long-term debt & 74,100 & 1.22 & 90,402 \\ \hline Dividends & (15,750) & 1.23 & (19,373) \\ \hline Net cash flows from financing activities & 58,350 & & 71,029 \\ \hline Net change in cash & 90,675 & & 109,566 \\ \hline Effect of exchange rate on cash & & & 14,346 \\ \hline Beginning cash & 229,500 & 1.19 & 273,105 \\ \hline Ending cash & 320,175 & 1.24$ & 397,017 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|} \hline Income Statement: & In Euros. & \begin{tabular}{c} Translation \\ Rate \end{tabular} & \begin{tabular}{c} In \\ US Dollars \end{tabular} \\ \hline Sales & 61,125,000 & 1.21 & 1,361,250 \\ \hline Cost of goods sold & (675,000) & 1.21 & (816,750) \\ \hline Gross profit & 450,000 & & 544,500 \\ \hline Operating expenses & (292,500) & 1.21 & (353,925) \\ \hline Net income & 157,500 & & 190,575 \\ \hline \multicolumn{4}{|l|}{ Statement of Retained Earnings: } \\ \hline BOY retained earnings & 6590,625 & & 461,343 \\ \hline Net income & 157,500 & s. & 190,575 \\ \hline Dividends & (15,750) & 1.23 & (19,373) \\ \hline EOY retained earnings & 6732,375 & & 632,545 \\ \hline \multicolumn{4}{|l|}{ Balance Sheet: } \\ \hline \multicolumn{4}{|l|}{ Assets } \\ \hline Cash & 320,175 & 1.24s & 397,017 \\ \hline Accounts receivable & 261,000 & 1.24 & 323,640 \\ \hline Inventory & 335,250 & 1.24 & 415.710 \\ \hline Property, plant, and equipment (PPE), net & 620,100 & 1.24 & 768,924 \\ \hline Total assets & 61,536,525 & & 1,905,291 \\ \hline \multicolumn{4}{|l|}{ Liabilities and stockholders' equity } \\ \hline Current liabilities & 6190,800 & 1.24 & 236,592 \\ \hline Long-term liabilities & 444,600 & 1.24 & 551,304 \\ \hline Common stock & 75,000 & 1 & 75,000 \\ \hline APIC & 93,750 & 1 & 93,750 \\ \hline Retained earnings & 732375 & & 632,545 \\ \hline \end{tabular} Translation of financial statements Assume that your company owns a subsidiary operating in France. The subsidiary conducts most of its business activities in the European Economic Union and maintains its books in the Euro as its functional currency. The subsidiary's financial statements (in ) for the most recent year follow in part a. below: The relevant exchange rates ($;1) are as follows: For both parts a. and b. below, use a negative sign with answers to indicate a reduction. a. Translate the subsidiary's income statement, statement of retained earnings, balance sheet, and statement of cash flows into sUS (assume that the BOY Retained Earnings is $461,343 ). b. Compute the ending Cumulative Translation Adjustment directly, assuming a BOY balance of $273,564. \begin{tabular}{|c|c|c|c|} \hline Total assets & e1,536,525 & $ & 1,905,291 \\ \hline \multicolumn{4}{|l|}{ Liabilities and stockholders' equity } \\ \hline Current liabilities & 190,800 & 1.24$ & 236,592 \\ \hline Long-term liabilities & 444,600 & 1.24 & 551,304 \\ \hline Common stock & 75,000 & 1 & 75,000 \\ \hline APIC & 93,750 & 1 & 93,750 \\ \hline Retained earnings & 732,375 & & 632,545 \\ \hline Cumulative translation adjustment ^ & & & 316,100 \\ \hline Total liabilities and equity & 1,536,525 & & 1,905,291 \\ \hline \multicolumn{4}{|l|}{ Statement of Cash Flows: } \\ \hline Net income & 157,500 & 1.21$ & 190,575 \\ \hline Change in accounts receivable & (43,500) & 1.21 & (52,635) \\ \hline Change in inventories & (55,875) & 1.21 & (67,609) \\ \hline Change in current liabilities & 31,800 & 1.21 & 38,478 \\ \hline Net cash from operating activities & 689,925 & & 108,809 \\ \hline Change in PPE, net & (57,600) & 1.22 & (70,272) \\ \hline Net cash from investing activities & (57,600) & & (70,272) \\ \hline Change in long-term debt & 74,100 & 1.22 & 90,402 \\ \hline Dividends & (15,750) & 1.23 & (19,373) \\ \hline Net cash flows from financing activities & 58,350 & & 71,029 \\ \hline Net change in cash & 90,675 & & 109,566 \\ \hline Effect of exchange rate on cash & & & 14,346 \\ \hline Beginning cash & 229,500 & 1.19 & 273,105 \\ \hline Ending cash & 320,175 & 1.24$ & 397,017 \\ \hline \end{tabular}
