QUESTION 4 (30 marks) Sundre Corp is a foreign subsidiary of Pawnee Company, a Canadian company. Sundre Corp was acquired December 31, 2020 and manufactures fireworks for sale based on sales prices determined by world-wide competition. The chief financial officer of Sundre Corp emailed the following December 31, 2021 financial statements, stated in Euro () to you, the CFO of Pawnee Company SUNDRE CORP Balance Sheets (in Euro ()) Cash Accounts receivable Inventory Note receivable, due December 31, 2024 Delivery vans, net Accounts payable Bonds payable Common shares Retained earnings Dec 31, 2021 Dec 31, 2020 210,000 190,000 310,000 550,000 335,000 500,000 100,000 430.000 1,600,000 150,000 700,000 275.000 1,300,000 180,000 500,000 300,000 300,000 450.000 320.000 1.600.000 1.300.000 SUNDRE CORP Statement of Income and Retained Earnings years ended December 31, 2021, and 2020 (in Euro ()) Sales and interest revenue Cost of goods sold Administration expenses Bond interest expense Amortization Income taxes Net income Retained earnings, January 1 Dividends Retained earnings, December 31 Additional Information 1. Exchange rates: Jan 1, 2019 Jan 1, 2020 Mar 31, 2020 Average for July 1 - Dec 2020 Dec 31, 2020/Jan 1, 2021 March 31, 2021 Average for Jan 1 - Jun 30, 2021 Average for Jul 1 - Dec 31, 2021 Average for Apr 1 Dec 31, 2021 Dec 31, 2021 Average for 2021 2021 1,700,000 2020 1,500,000 1,200,000 1,210,000 105,000 95,000 60,000 40,000 85,000 55,000 80.000 32,000 170,000 68,000 320,000 282,000 (40,000) (30.000) 450,000 320,000 1 EURO = C $1.50 1 EURO = C $1.45 1 EURO = C $1.43 1 EURO = C $1.44 1 EURO = C $1.48 1 EURO C$1.52 1 EURO = C $1.54 1 EURO = C $1.57 1 EURO = C $1.53 1 EURO C $1.59 1 EURO = C $1.55