Question 6: Assume that your Maribel Company owns a subsidiary operating in France. The subsidiary conducts most of its business activities in the European Economic Union and maintains its books in the Euro as its functional currency. The subsidiary's financial statements (in ) for the most recent year follow in a. below: The relevant exchange rates (S:1) are as follows BOY rate EOY rate Avg. rate PPE purchase date rate LTD borrowing date rate Dividend rate $0.97 $1.06 $1.03 $1.02 $1.05 $1.04 Historical rate (common stock and APIC) $0.65 Translate the subsidiary's income statement, statement of retained earnings, balance sheet, and statement of cash flows into SUS using the current-rate method (assume that the BOY Retained Earnings is $302,562. Translation In Income Statement: Sales Cost of goods sold Gross In Euros US Dollars 750,000 I.O 450,000 1 103 Operating expenses -195,000 1.0 105,000 Net income Statement of Retained Earnings: BOY ret. eamings Net income Dividends EOY ret. earnings Balance Sheet: Assets Cash Accounts receivable Inventory 393,750aive 10,500 488,250 174,0001 Oo K 223,500 0 83 413,400 1.0le 4382 Property, plant, and equipment (PPE), net 1,024,350E Total assets Liabilities and stockholders' equity Curr.liabilities L-T liabilities Common stock APIC Ret. earnings 127.200 0 13- 296,400 1.0e 34 50,000 (5 62,500s 488,250 399 718 1,024,350 Total liabilities and equity