Slingshot Corp is a foreign subsidiary of Porcelain Company, a Canadian company. Slingshot Corp was acquired December 31, 2018 and manufactures tableware for sale based on sales prices determined by world-wide competition. The chief financial officer of Slingshot Corp emailed the following December 31, 2019 financial statements, stated in Euro () to you, the CFO of Porcelain Company

Inventories on hand at December 31, 2019 and December 31, 2018 were purchased evenly over the final 6 months of 2019 and 2018 respectively.

Slingshot Corp issued 500,000 of its bonds on January 1, 2017 and 300,000 on January 1, 2019. All bonds pay interest at 8% and mature on December 31, 2024.On July 2, 2019, Slingshot Corp repurchased 100,000 of the bonds at their face value.

Slingshot Corp declared and paid dividends of 30,000 and 40,000 on March 31, 2018 and March 31, 2019, respectively.

Slingshot Corp leased its delivery vans until January 1, 2018.

On that date, it acquired 10 delivery vans at a cost of 330,000. On March 31, 2019, it acquired an additional 8 delivery vans at acost of 240,000. All of Slingshot Corp's delivery vans have an estimated useful life of 6 years from the date of acquisition, with no expected salvage value. None of the delivery vans have been sold since January 1, 2018.

The notes receivable was received from one of Slingshot Corp's clients on March 31, 2019. It pays interest at 10% and is due on December 31, 2022.

All sales, purchases, and other expenses are incurred evenly throughout the year.

8.

All amounts for Slingshot Corp are stated in Euro ().

REQUIRED:

Translate Slingshot Corp's 2019 financial statements into Canadian dollars, the Canadian dollar as the functional currency (Income Statement, Retained Earnings, Balance Sheet) Include in your calculations (1) the gain or loss on net monetary assets (liabilities), (2) cost of goods sold, (3) amortization expense. (FCT) (23 marks)

Assuming that Slingshot uses the Euro (not Canadian $) as the functional currency, Calculate the liabilities and shareholder's equity portion of the translated balance sheet as at December 31, 2019.Use the presentation currency translation method (PCT) (7 marks)

SHOW ALL CALCULATIONS, including Accumulated translation adjustments (OCI) at December 31, 2019.

Cash Accounts receivable Inventory SLINGSHOT CORP Balance Sheets (in Euro ()) Note receivable, due December 31, 2020 Delivery vans, net Accounts payable Bonds payable Dec 31, 2019 Dec 31, 2018 210,000 430,000 1,600,000 190,000 310,000 335,000 550,000 500,000 100,000 275,000 1,300,000 150,000 180,000 700,000 500,000 Common shares 300,000 300,000 Retained earnings 450,000 1,600,000 320,000 1,300,000