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$ 15,805
Accumulated depreciation		30,000
Buildings and equipment	C$ 170,000
Cash	29,000
Common stock		53,000
Cost of goods sold	206,000
Depreciation expense	7,200
Dividends, 4/1/15	22,000
Gain on sale of equipment, 6/1/15		5,300
Inventory	82,000
Notes payabledue in 2018		72,000
Receivables	71,000
Retained earnings, 1/1/15		138,590
Salary expense	26,000
Sales		315,000
Utility expense	9,300
Branch operation	7,195
Totals	C$ 629,695	C$ 629,695

Branch OperationMexico
	Debit	Credit
Accounts payable		Ps 46,300
Accumulated depreciation		18,800
Building and equipment	Ps 43,000
Cash	60,500
Depreciation expense	2,300
Inventory (beginningincome statement)	26,000
Inventory (endingincome statement)		29,500
Inventory (endingbalance sheet)	29,500
Purchases	60,000
Receivables	24,000
Salary expense	9,300
Sales		127,000
Main office		33,000
Totals	Ps 254,600	Ps 254,600

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$0.22 = 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$7,195 on December 31, 2015.
	Currency exchange rates for 1 Ps applicable to the Mexican operation follow:

Weighted average, 2014	C$	0.27
January 1, 2015		0.29
Weighted average rate for 2015		0.31
December 31, 2015		0.32

	The December 31, 2014, consolidated balance sheet reported a cumulative translation adjustment with a $39,950 credit (positive) balance.
	The subsidiarys common stock was issued in 2004 when the exchange rate was $0.48 = C$1.

	The subsidiarys December 31, 2014, Retained Earnings balance was C$138,590.00, a figure that has been translated into US$68,723.
	The applicable currency exchange rates for 1 C$ 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.)

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.)

Accounts payable Accumulated depreciation Building and equipment Cash Depreciation expense Inventory (beginning income statement) Inventory (endin income statement) Inventory (ending balance sheet) Purchases Receivables Salary expense Sales Main office Total Canadian Dollars Debit Credit