please complete A,B and C both parts

(10 points) Assume that our company owns a subsidiary operating in Great Britain. The subsidiary maintains is books in Pound Sterling () as its functional currency. Following are the subsidiary's financial statements (in E) for the most recent year Subsidiary in E) Income statement Sales 5,100,000 Cost of goods sold (3,060,000) Gross Profit 2,040,000 Operating expenses (1,326,000) Net income 714,000 Statement of retained earnings BOY retained earnings Net income Dividends Ending retained earnings 2,677,500 714,000 (71,400) 3,320,100 Balance sheet: Assets Cash Accounts receivable Inventory PPE, net Total Assets 1,451,460 1,183,200 1,519,800 2,811,120 6,965,580 Liabilities and Stockholders' Equity Current Liabilities Long-term Liabilities Common Stock APIC Retained Earnings Cumulative translation adjustment Total Liabilities & Equity 864,960 2.015,520 340,000 425,000 3,320,100 6,965,580 Statement of cash flows: Net income Change in Accounts Receivable Change in Inventories Change in Current Liabilities Net cash flows from operating activities 714,000 (197,200) (253,300) 144,160 407,660 Change in PPE, net Net cash flows from investing activities (261,120) (261,120) Change in long-term debt 335,920 Dividends Net cash flows from financing activities (71,400) 264,520 411,060 Net change in cash Effect of exchange rate on cash Beginning cash Ending cash 1,040,460 1,451,460 The relevant exchange rates for the SUS value of the Euro () are as follows: BOY Rate EOY rate Avg. rate PPE purchase date rate LTD borrowing date rate Dividend rate Historical rate (Common Stock and APIC) $1.50 $1.65 $1.60 $1.57 $1.63 $1.64 $0.65 Required: a. Translate the subsidiary's, income statement, statement of retained earnings, balance sheet, and statement of cash flows from Pounds Sterling (E) into $US (assume that the BOY Retained Earnings for the subsidiary is $2,671,552 Subsidiary Translation Subsidiary (in ) Rate in S) Income statement Sales 5,100,000 Cost of goods sold (3,060,000) Gross Profit 2,040,000 Operating expenses (1,326,000) Net income 714,000 Statement of retained earnings: BOY retained earnings Net income Dividends Ending retained earnings 2,677,500 714,000 (71,400) 3,320,100 Balance sheet: Assets Cash Accounts receivable Inventory PPE, net Total Assets 1,451,460 1,183,200 1,519,800 2,811,120 6,965,580 Liabilities and Stockholders' Equity Current Liabilities Long-term Liabilities Common Stock APIC Retained Earnings Cumulative translation adjustment Total Liabilities & Equity 864,960 2,015,520 340,000 425,000 3,320,100 6,965,580 Statement of cash flows Net income Change in Accounts Receivable Change in Inventories Change in Current Liabilities Net cash flows from operating activities 714,000 (197,200) (253,300) 144,160 407,660 Change in PPE, net Net cash flows from investing activities (261,120) (261,120) Change in long-term debt Dividends Net cash flows from financing activities 335,920 (71,400) 264,520 411,060 Net change in cash Effect of exchange rate on cash Beginning cash Ending cash 1,040,400 1,451,460 b. Compute the end Cumulative Translation Adjustment directly, assuming a BOY balance of $1,994.948. c. Refer to the selected financial statement accounts for the parent, below. Assume the following information: The purchase price for the subsidiary included an AAP asset relating to Land that the parent estimated was worth 400,000 more than book value on the subsidiary's balance sheet. The exchange rate in effect when the subsidiary was acquired was $1.15.1. Compute the balance of the Equity Investment account of $7,400,416 on the parent's balance sheet. Compute the balance of the Equity Income of $1,142,400 on the parent's income statement il Prepare the consolidation spreadsheet for the year. Elimination entries Parent Subsidiary Consolidated Income statement Sales Cost of goods sold Gross Profit Equity income Operating expenses Net income $8,500,000 (5,950,000) 2,550,000 1,142,400 (1.615,000) $2,077,400 Statement of retained eamings BOY retained earnings Net income Dividends $6,103,000 2,077,400 (244, 120 $7.936.280 Ending retained earnings Balance sheet: Assets Cash Accounts receivable Inventory Equity Investment $ 473,653 1,088,000 1,449,000 7,400,416 PPE, net 8,782,200 $19,193,269 Liabilities and Stockholders' Equity Current liabilities Long-term Liabilities Common Stock APIC Retained Earnings Cumulative Translation Adjustment $ 3,314,630 3,500,000 335,664 1,560,386 7,936 280 2,546,309 $19.193,269 (10 points) Assume that our company owns a subsidiary operating in Great Britain. The subsidiary maintains is books in Pound Sterling () as its functional currency. Following are the subsidiary's financial statements (in E) for the most recent year Subsidiary in E) Income statement Sales 5,100,000 Cost of goods sold (3,060,000) Gross Profit 2,040,000 Operating expenses (1,326,000) Net income 714,000 Statement of retained earnings BOY retained earnings Net income Dividends Ending retained earnings 2,677,500 714,000 (71,400) 3,320,100 Balance sheet: Assets Cash Accounts receivable Inventory PPE, net Total Assets 1,451,460 1,183,200 1,519,800 2,811,120 6,965,580 Liabilities and Stockholders' Equity Current Liabilities Long-term Liabilities Common Stock APIC Retained Earnings Cumulative translation adjustment Total Liabilities & Equity 864,960 2.015,520 340,000 425,000 3,320,100 6,965,580 Statement of cash flows: Net income Change in Accounts Receivable Change in Inventories Change in Current Liabilities Net cash flows from operating activities 714,000 (197,200) (253,300) 144,160 407,660 Change in PPE, net Net cash flows from investing activities (261,120) (261,120) Change in long-term debt 335,920 Dividends Net cash flows from financing activities (71,400) 264,520 411,060 Net change in cash Effect of exchange rate on cash Beginning cash Ending cash 1,040,460 1,451,460 The relevant exchange rates for the SUS value of the Euro () are as follows: BOY Rate EOY rate Avg. rate PPE purchase date rate LTD borrowing date rate Dividend rate Historical rate (Common Stock and APIC) $1.50 $1.65 $1.60 $1.57 $1.63 $1.64 $0.65 Required: a. Translate the subsidiary's, income statement, statement of retained earnings, balance sheet, and statement of cash flows from Pounds Sterling (E) into $US (assume that the BOY Retained Earnings for the subsidiary is $2,671,552 Subsidiary Translation Subsidiary (in ) Rate in S) Income statement Sales 5,100,000 Cost of goods sold (3,060,000) Gross Profit 2,040,000 Operating expenses (1,326,000) Net income 714,000 Statement of retained earnings: BOY retained earnings Net income Dividends Ending retained earnings 2,677,500 714,000 (71,400) 3,320,100 Balance sheet: Assets Cash Accounts receivable Inventory PPE, net Total Assets 1,451,460 1,183,200 1,519,800 2,811,120 6,965,580 Liabilities and Stockholders' Equity Current Liabilities Long-term Liabilities Common Stock APIC Retained Earnings Cumulative translation adjustment Total Liabilities & Equity 864,960 2,015,520 340,000 425,000 3,320,100 6,965,580 Statement of cash flows Net income Change in Accounts Receivable Change in Inventories Change in Current Liabilities Net cash flows from operating activities 714,000 (197,200) (253,300) 144,160 407,660 Change in PPE, net Net cash flows from investing activities (261,120) (261,120) Change in long-term debt Dividends Net cash flows from financing activities 335,920 (71,400) 264,520 411,060 Net change in cash Effect of exchange rate on cash Beginning cash Ending cash 1,040,400 1,451,460 b. Compute the end Cumulative Translation Adjustment directly, assuming a BOY balance of $1,994.948. c. Refer to the selected financial statement accounts for the parent, below. Assume the following information: The purchase price for the subsidiary included an AAP asset relating to Land that the parent estimated was worth 400,000 more than book value on the subsidiary's balance sheet. The exchange rate in effect when the subsidiary was acquired was $1.15.1. Compute the balance of the Equity Investment account of $7,400,416 on the parent's balance sheet. Compute the balance of the Equity Income of $1,142,400 on the parent's income statement il Prepare the consolidation spreadsheet for the year. Elimination entries Parent Subsidiary Consolidated Income statement Sales Cost of goods sold Gross Profit Equity income Operating expenses Net income $8,500,000 (5,950,000) 2,550,000 1,142,400 (1.615,000) $2,077,400 Statement of retained eamings BOY retained earnings Net income Dividends $6,103,000 2,077,400 (244, 120 $7.936.280 Ending retained earnings Balance sheet: Assets Cash Accounts receivable Inventory Equity Investment $ 473,653 1,088,000 1,449,000 7,400,416 PPE, net 8,782,200 $19,193,269 Liabilities and Stockholders' Equity Current liabilities Long-term Liabilities Common Stock APIC Retained Earnings Cumulative Translation Adjustment $ 3,314,630 3,500,000 335,664 1,560,386 7,936 280 2,546,309 $19.193,269