please i need help in this

1. Unicorn Gases (U.S. Company) owns Pryce Gases, Inc. a subsidiary in Italy, which was established December 31,2018. Pryce immediately purchased inventory for 600,000 Euros Phoenix Inc. balance sheet items as of 12/31/2018, in Euros: Cash 400,000 Capital stock 1,000,000 Inventory 600,000 Italia Inc. Income Statement December 31, 2019 (in Euros) Sales 8,000,000 Less: Costs of Goods Sold 6,000,000 Gross Profit 2,000,000 Selling and Administrative Exp. 500,000 Depreciation Expenses 200,000 Interest Expense 180,000 Income before Income Tax 1,100,000 Income Tax 275,000 Net Income 825,000 Italia Inc. Balance Statement December 31, 2019 (in Euros) ASSETS Cash Accounts Receivable Inventory (FIFO) Property. Plant and Equipment Accum. Depreciation 550,000 600,000 800,000 2,000,000 (200,000) 1,800,000 Patents Total Assets 80,000 3,830,000 LIABILITIES & EQUITY Accounts Payable Long-term Debts Capital Stock Retained Earnings Total Liabilities & Equity 330,000 2,000,000 1,000,000 500,000 3,830,000 Phoenix Inc. Statement of Retained Earnings December 31, 2019 (in Euros) . 0 825,000 (325.000) 500.000 . . Retained Earnings 1/1/Y1 Net Income, Dec. 31, 2019 Less: Dividends 12/1/41 Retained Earnings 12/31/Y1 Relevant exchange rates January 1, 2019 Rate when PPE and LT debt incurred Rate when Patent acquired Average exchange rate Year 2019 Rate 12/1/2019 when dividends declared Average exchange rate December 2019 December 31, 2019 . . $2.50 = 1 euro $2.40 = 1 euro $2.35 = 1 euro $2.45 = 1 euro $2.27 = 1 euro $2.25 = 1 euro $2.30 = 1 euro . . . Requirement: 1. Using the given data and financial statement template, translate the financial statements using current rate method. ITALIA INCOME STATEMENT DECEMBER 31, Year 1 Exchange Rate (in Dollar Amt) Sales Cost of Goods Sold Gross Profit Selling and Adm. Exp. Depreciation Expense Amortization Expense Interest Expense Income b4 Income Tax Income Tax Net Income (in Euro) 8,000,000 6,000,000 2,000,000 500,000 200,000 20,000 180,000 1,100,000 275,000 825,000 (1) (2) (3) (4) (5) (6) (7) (8) (9) ITALIA, INC RETAINED EARNINGS DECEMBER 31, Year 1 Exchange Rate (In US $) Retained Earnings 1/1/Y1 Net Income Less: Dividends 12/1/41 Retained Earnings, 12/31/41 (in Euro) 0 825,000 (325,000) 500,000 (10) (11) (12) (13) ITALIA BALANCE SHEET DECEMBER 31, Year 1 Exchange Rate (In US $) (in Euro) 550,000 600,000 800,000 2,000,000 (200,000) 80,000 3,830,000 Cash Accts Receivable Inventory (FIFO) PPE Accum. Deprn-PPE Patents Total Assets Liabilities & Equity Accounts Payable Long-term Debts (14) (15) (16) (17) (18) (19) (20) wwwwww 330,000 2,000,000 (21) (22) Capital Stocks Retained Earnings Liab. & Equity Translation Adjustment Liabilities & Equity 1,000,000 500,000 3,830,000 (23) (24) (25) (26) (27) 3,830,000 1. Unicorn Gases (U.S. Company) owns Pryce Gases, Inc. a subsidiary in Italy, which was established December 31,2018. Pryce immediately purchased inventory for 600,000 Euros Phoenix Inc. balance sheet items as of 12/31/2018, in Euros: Cash 400,000 Capital stock 1,000,000 Inventory 600,000 Italia Inc. Income Statement December 31, 2019 (in Euros) Sales 8,000,000 Less: Costs of Goods Sold 6,000,000 Gross Profit 2,000,000 Selling and Administrative Exp. 500,000 Depreciation Expenses 200,000 Interest Expense 180,000 Income before Income Tax 1,100,000 Income Tax 275,000 Net Income 825,000 Italia Inc. Balance Statement December 31, 2019 (in Euros) ASSETS Cash Accounts Receivable Inventory (FIFO) Property. Plant and Equipment Accum. Depreciation 550,000 600,000 800,000 2,000,000 (200,000) 1,800,000 Patents Total Assets 80,000 3,830,000 LIABILITIES & EQUITY Accounts Payable Long-term Debts Capital Stock Retained Earnings Total Liabilities & Equity 330,000 2,000,000 1,000,000 500,000 3,830,000 Phoenix Inc. Statement of Retained Earnings December 31, 2019 (in Euros) . 0 825,000 (325.000) 500.000 . . Retained Earnings 1/1/Y1 Net Income, Dec. 31, 2019 Less: Dividends 12/1/41 Retained Earnings 12/31/Y1 Relevant exchange rates January 1, 2019 Rate when PPE and LT debt incurred Rate when Patent acquired Average exchange rate Year 2019 Rate 12/1/2019 when dividends declared Average exchange rate December 2019 December 31, 2019 . . $2.50 = 1 euro $2.40 = 1 euro $2.35 = 1 euro $2.45 = 1 euro $2.27 = 1 euro $2.25 = 1 euro $2.30 = 1 euro . . . Requirement: 1. Using the given data and financial statement template, translate the financial statements using current rate method. ITALIA INCOME STATEMENT DECEMBER 31, Year 1 Exchange Rate (in Dollar Amt) Sales Cost of Goods Sold Gross Profit Selling and Adm. Exp. Depreciation Expense Amortization Expense Interest Expense Income b4 Income Tax Income Tax Net Income (in Euro) 8,000,000 6,000,000 2,000,000 500,000 200,000 20,000 180,000 1,100,000 275,000 825,000 (1) (2) (3) (4) (5) (6) (7) (8) (9) ITALIA, INC RETAINED EARNINGS DECEMBER 31, Year 1 Exchange Rate (In US $) Retained Earnings 1/1/Y1 Net Income Less: Dividends 12/1/41 Retained Earnings, 12/31/41 (in Euro) 0 825,000 (325,000) 500,000 (10) (11) (12) (13) ITALIA BALANCE SHEET DECEMBER 31, Year 1 Exchange Rate (In US $) (in Euro) 550,000 600,000 800,000 2,000,000 (200,000) 80,000 3,830,000 Cash Accts Receivable Inventory (FIFO) PPE Accum. Deprn-PPE Patents Total Assets Liabilities & Equity Accounts Payable Long-term Debts (14) (15) (16) (17) (18) (19) (20) wwwwww 330,000 2,000,000 (21) (22) Capital Stocks Retained Earnings Liab. & Equity Translation Adjustment Liabilities & Equity 1,000,000 500,000 3,830,000 (23) (24) (25) (26) (27) 3,830,000