Please only answer 13-3. PLEASE ONLY ANSWER 13-3 A-C Please. Please only answer only 1-3 but all parts (A-C). Thank you in advance.

Chapter 13 Translation of Financial Statements of Foreign Affiliates problems 515 The account balances are computed in conformity with U.S. generally accepted accounting standards. Other information is as follows: 1. Direct exchange rates for the New Zealand dollar on various dates were: 2. Ventana Grains purchased additional equipment for 100,000 New Zealand dollars on July 1,2019 , by issuing a note for 80,000 New Zealand dollars and paying the balance in cash. 3. Sales were made and purchases and "Other Expenses" were incurred evenly throughout the year. 4. Depreciation for the period in New Zealand dollars was computed as follows: 5. The inventory is valued on a FIFO basis. The beginning inventory was acquired when the exchange rate was $.7480. The ending inventory was acquired during the last four months of 2019. 6. Dividends of 50,000 New Zealand dollars were paid on July 1 and December 31 . Required: A. Translate the financial statements into dollars assuming that the local currency of the foreign subsidiary was identified as its functional currency. B. Prepare a schedule to verify the translation adjustment determined in requirement A. Describe how the translation adjustment would be reported in the financial statements. 2 Remeasurement-U.S. Dollar Is the Functional Currency LO 8 Refer to the information given in Problem 13-1. Required: A. Remeasure the financial statements into dollars assuming that the U.S. dollar was identified as the functional currency of the foreign subsidiary. B. Prepare a schedule to verify the translation gain or loss determined in requirement A. Describe how the translation gain or loss would be reported in the financial statements. 3-3 Translation-Local Currency Is the Functional Currency LO 7 (This problem is a continuation of the illustration presented in the chapter.) On January 2, 2019, P Company, a U.S.-based company, acquired for 2,000,000 francs an 80% interest in SFr Company, a Swiss company. On January 2, 2019, SFr Company reported a retained earnings balance of 480,000 francs. SFr's books are maintained in Swiss francs and are in conformity with U.S. generally accepted accounting principles. Trial balances of the two companies as of December 31, 2020, are presented here: Other information related to the subsidiary follows: 1. Beginning inventory of 830,000 Swiss francs was acquired when the exchange rate was $1.078. 2. Purchases made uniformly throughout 2020 were 2,520,000 francs. 3. The Swiss franc is identified as the subsidiary's functional currency. 4. The subsidiary's beginning (1/1/20) retained earnings and cumulative translation adjustment (credit) in dollars were $175,948 and $390,691 respectively. 5. All plant assets were acquired before the parent obtained a controlling interest in the subsidiary. 6. Sales are made and all expenses are incurred uniformly throughout the year. 7. The ending inventory was acquired during the last quarter. 8. The subsidiary declared and paid dividends of 375,000 francs on September 2 . 9. The following direct exchange rate quotations were available: Required: A. Prepare a translated balance sheet and combined statement of income and retained earnings for the subsidiary. B. Prepare a schedule to verify the translation adjustment. C. Compute the following ratios based on the franc and the U.S. dollar financial statements, (1) Current ratio. (2) Debt to equity. (3) Gross profit percentage. (4) Net income to sales