Save Answer Question 1 5 polnts A U.S. Company, on Junuary 2, 2018, purchased a 100% interest in a subdivision located in Spain. Sales were enmed and operating expenses were incurred evenly during the year. Exchange rates for the euro at various dutes are: 1.202 1.208 January 2, 2018 December 31, 2018 Average for 2018 Dec. 10, 2018, dividends declared & 1.198 paid 1.185 June 30, 2015 1.116 Notes: Read carefully and follow strictly so that Bb can grade you correctly 1. Use comma in numbers, one thousand is 1,000, not 1000. Round to the nearest dollar: 1,000.45 should be 1,000, and 1,000.55 should be 1,001, no decimal points. No S sign. 2. Use parenthesis () for expenses, accumulated depreciation, dividends, and G/L or adjustments only Required: Translate the year-end financial statements of the foreign subsidiary using the temporal method (Round numbers to the nearest dollar) Required: Translate the year-end financial statements of the foreign subsidiary using the temporal method (Round numbers to the nearest dollar) Translation of Financial Statements to U.S. Dollars For Year Ended December 31, 2018 Balance Sheets Dec 31, 2018 Exchange Rate U.S. Dollars Cash 295,000 Accounts receivable 385,000 Plant and equipment (net) (purchased 6/30/2015) 590,000 Land (purchased 6/30/2015) 355,000 Total Assets 1.625.000 Accounts payable $ 202,000 Long-term notes payable (issued 6/30/2015) 507,000 Common stock (issued 6/30/2015) 90,000 $ Common stock (issued 6/30/2015) 90,000 $ Retained earnings 826,000 $ Total Liabilities & Equity 1.625,000 Income Statement Revenues 874,000 $ Depreciation (35,000) Operating exp. excld. Depreciation (553,000) Translation G/L $ Net income 286,000 Statement of Retained Earnings Retained earnings, beginning of year 725,000 Net income 286,000 uestion completion Status: Operating exp. excld. Depreciation (553,000) Translation G/L Net income 286,000 Statement of Retained Earnings Retained earnings, beginning of year 725,000 $ Net income $ 286,000 1,011,000 Dividends declared and paid (185,000) Ending retained earnings 826,000