Ron Abrams, VP Operations for Wilson Bros. has come wandering into your office

muttering under his breath (clearly exasperated) after reading the financial statements

for one of the plants in Western Europe. After composing himself somewhat he says,

"How can a Canadian finance executive sign off on these statements? They look

nothing like any statement I've seen in Canada before! I know we paid a translator to

present these in English, but I cannot make heads or tails of these. Are we profitable

there or not?"

Knowing what you have read about financial statements briefly describe if these

financial statements could be correct, and if so why?