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Question #1: Amazon Company established a subsidiary in Brazil on January 1, 2019. The subsidiary engaged in the following transactions during 2019: Jan. 1 Sold
Question #1: Amazon Company established a subsidiary in Brazil on January 1, 2019. The subsidiary engaged in the following transactions during 2019: Jan. 1 Sold common stock to Amazon for 5,000,000 reals Purchased inventory throughout the year, 8,000,000 reals (V4 of the inventory remained at year end). Sales for the year totaled 12,000,000 reals. Purchased equipment for 1,000,000 real. Dec. 31 Amazon concluded that the subsidiary's functional currency was the dollar. Exchange rates for 2019 were: Jan. 1 I real = $.20 I real = $.19 Dec. 31 I real = $.16 Weighted average rate for the year I real = $.18 31 Prepare the statement of cash flows, statement of retained earnings, balance sheet, and income statement of Amazon Company for the year ending December 31, 2019
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