Sendelbach Corporation is a U.S.based organization with operations throughout the world. One of its subsidiaries is headquartered in Toronto. Although this wholly owned company operates primarily in Canada, it engages in some transactions through a branch in Mexico. Therefore, the subsidiary maintains a ledger denominated in Mexican pesos (Ps) and a general ledger in Canadian dollars (C$). As of December 31, 2015, the subsidiary is preparing financial statements in anticipation of consolidation with the U.S. parent corporation. Both ledgers for the subsidiary are as follows:

Main OperationCanada
	Debit	Credit
Accounts payable		C$ 23,770
Accumulated depreciation		34,000
Buildings and equipment	C$ 174,000
Cash	33,000
Common stock		57,000
Cost of goods sold	210,000
Depreciation expense	7,600
Dividends, 4/1/15	26,000
Gain on sale of equipment, 6/1/15		5,700
Inventory	86,000
Notes payabledue in 2018		76,000
Receivables	75,000
Retained earnings, 1/1/15		142,590
Salary expense	30,000
Sales		319,000
Utility expense	9,700
Branch operation	6,760
Totals	C$ 658,060	C$ 658,060

Branch OperationMexico
	Debit	Credit
Accounts payable		Ps 53,200
Accumulated depreciation		22,700
Building and equipment	Ps 47,000
Cash	62,500
Depreciation expense	2,700
Inventory (beginningincome statement)	30,000
Inventory (endingincome statement)		31,500
Inventory (endingbalance sheet)	31,500
Purchases	64,000
Receivables	28,000
Salary expense	9,700
Sales		131,000
Main office		37,000
Totals	Ps 275,400	Ps 275,400

Additional Information

	The Canadian subsidiarys functional currency is the Canadian dollar, and Sendelbachs reporting currency is the U.S. dollar. The Canadian and Mexican operations are not viewed as separate accounting entities.
	The building and equipment used in the Mexican operation were acquired in 2005 when the currency exchange rate was C$0.18 = Ps 1.
	Purchases should be assumed as having been made evenly throughout the fiscal year.
	Beginning inventory was acquired evenly throughout 2014; ending inventory was acquired evenly throughout 2015.
	The Main Office account on the Mexican records should be considered an equity account. This balance was remeasured into C$6,760 on December 31, 2015.
	Currency exchange rates for 1 Ps applicable to the Mexican operation follow:

Weighted average, 2014	C$	0.23
January 1, 2015		0.25
Weighted average rate for 2015		0.27
December 31, 2015		0.28

	The December 31, 2014, consolidated balance sheet reported a cumulative translation adjustment with a $43,950 credit (positive) balance.
	The subsidiarys common stock was issued in 2004 when the exchange rate was $0.52 = C$1.

	The subsidiarys December 31, 2014, Retained Earnings balance was C$142,590.00, a figure that has been translated into US$66,123.
	The applicable currency exchange rates for 1 C$ for translation purposes are as follows:

January 1, 2015	US$	0.70
April 1, 2015		0.69
June 1, 2015		0.68
Weighted average rate for 2015		0.67
December 31, 2015		0.65

a.	Remeasure the Mexican operations figures into Canadian dollars. (Hint: Back into the beginning net monetary asset or liability position.) (Input all amounts as positive values.)

b.

Prepare financial statements (income statement, statement of retained earnings, and balance sheet) for the Canadian subsidiary in its functional currency and Prepare consolidated financial statement in parent currency (that is U.S. dollars). (Round U.S. Dollar values to 2 decimal places. Amounts to be deducted and losses should be indicated with a minus sign.)