Subsidiary (in GBP Translation Rate Subsidiary (in ) Statement of cash flows: Photos - 77.png 441.000 $652,680 Net income $1.48 (121,800) (180,264) $1.48 + a Change in Accounts Receivable IM Assume that our company owns a subsidiary operating in Great Britain and accounts for its investmer Subsidiary Translation Subsidiary (in GBP) Rate in s Income statement: 3,150,000 $4,662,000 Sales $1.48 (1,890,000) (2,797,200) Cost of goods sold $1.48 1,260,000 1,864.800 Gross Profit (819,000) (1,212,120) Operating expenses $1.48 441,000 5652,680 Net income (156,450) (231,346) Change in Inventories $1.48 89,040 131,779 $1.48 Change in Current Liabilities Net cash flows from operating activities 251,790 $372,649 (161,280) (5240,307) $1.49 Income statement: Sales..... Cost of goods sold Gross profit.. Equity income Operating expenses Net Income Change in PPE, net Net cash flows from investing activities $13.815.000 (9.670.500) 4,144,500 652,680 (2.624,850) $ 2,172,330 Balance sheet: Assets Cash Accounts receivable Inventory Equity investment PPE, net Statement of retained earnings: (161,280) (5240,307) $ 1,526,569 1,768,320 2,680.110 4,139,188 14 273,658 $24,387,845 1.653,750 52.926,035 BOY retained earnings given 441,000 652.680 207,480 $309,143 Net income above Change in long-term debt $1.49 (44.100) (66,150) (44,100) (66,150) Dividends $1.50 $1.50 Statement of retained earnings: BOY retained earnings Not income Dividends ..... Ending retained earnings $11,898,000 2,172,330 (475,920) $13,594,410 Dividends Net cash flows from financing activities 2,050,650 $3,512,565 163,380 $242,995 Ending retained earnings computed Liabilities and stockholders' equity Current liabilities Long-term liabilities Common stock APIC Retained earnings Cumulative translation adjustment $ 1,106,582 750,000 1.568.535 7.291,571 13,594,410 76.748 $24,387,845 Balance sheet: Assets 253,890 $375,337 Net change in cash Statement of accum. comp. income: BOY cumulative translation adjustment Current-year translation gain (loss) EOY cumulative translation adjustment 896,490 $1,362,665 $ (102,848) 179,596 76.748 Cash 55,358 $1.52 Effect of exchange rate on cash plug 730,800 1,110,816 642,600 931,770 Accounts receivable $1.52 Beginning cash $1.45 938,700 1,426,824 896,490 $1.52 Inventory $1,362,665 Ending cash $1.52 1.736,280 2,639,146 PPE, net $1.52 Following are selected financial statement accounts for the parent: 4,302.270 $6,539,451 Total Assets Income statement Cost of good SIM Liabilities and Stockholders Equity 4, Econ Oprogress Account way. Euront PPE. 2.8.10 41331 sa 534,240 $812,045 $2,22 200 Current Liabilities $1.52 1,244,880 1,892,218 Stent of red in BOY 11000 Long-term Liabilities $1.52 2,17230 duty Our Long- Dividende 210,000 115.500 S1410 750 DOO 1985 72015 13.00 Common Stock $0.33 Sent of acum concom BOY con 262,500 SU Ourent 144,375 APIC $0.55 BOY con un S 2,050,650 3,512,565 Retained Earnings above 62,748 Cumulative translation adjustment plug Assume the following information: The purchase price for the subsidiary included an AAP asset relating to Land that the parent estimated was worth GBP200,000 more than its book value on the subsidiary's balance sheet Using the translated subsidiary financial statements provided above along with the parent's financial data prepare the "C" consolidation entry 4,302,270 56,539,451 Total Liabilities & Equity Subsidiary (in GBP Translation Rate Subsidiary (in ) Statement of cash flows: Photos - 77.png 441.000 $652,680 Net income $1.48 (121,800) (180,264) $1.48 + a Change in Accounts Receivable IM Assume that our company owns a subsidiary operating in Great Britain and accounts for its investmer Subsidiary Translation Subsidiary (in GBP) Rate in s Income statement: 3,150,000 $4,662,000 Sales $1.48 (1,890,000) (2,797,200) Cost of goods sold $1.48 1,260,000 1,864.800 Gross Profit (819,000) (1,212,120) Operating expenses $1.48 441,000 5652,680 Net income (156,450) (231,346) Change in Inventories $1.48 89,040 131,779 $1.48 Change in Current Liabilities Net cash flows from operating activities 251,790 $372,649 (161,280) (5240,307) $1.49 Income statement: Sales..... Cost of goods sold Gross profit.. Equity income Operating expenses Net Income Change in PPE, net Net cash flows from investing activities $13.815.000 (9.670.500) 4,144,500 652,680 (2.624,850) $ 2,172,330 Balance sheet: Assets Cash Accounts receivable Inventory Equity investment PPE, net Statement of retained earnings: (161,280) (5240,307) $ 1,526,569 1,768,320 2,680.110 4,139,188 14 273,658 $24,387,845 1.653,750 52.926,035 BOY retained earnings given 441,000 652.680 207,480 $309,143 Net income above Change in long-term debt $1.49 (44.100) (66,150) (44,100) (66,150) Dividends $1.50 $1.50 Statement of retained earnings: BOY retained earnings Not income Dividends ..... Ending retained earnings $11,898,000 2,172,330 (475,920) $13,594,410 Dividends Net cash flows from financing activities 2,050,650 $3,512,565 163,380 $242,995 Ending retained earnings computed Liabilities and stockholders' equity Current liabilities Long-term liabilities Common stock APIC Retained earnings Cumulative translation adjustment $ 1,106,582 750,000 1.568.535 7.291,571 13,594,410 76.748 $24,387,845 Balance sheet: Assets 253,890 $375,337 Net change in cash Statement of accum. comp. income: BOY cumulative translation adjustment Current-year translation gain (loss) EOY cumulative translation adjustment 896,490 $1,362,665 $ (102,848) 179,596 76.748 Cash 55,358 $1.52 Effect of exchange rate on cash plug 730,800 1,110,816 642,600 931,770 Accounts receivable $1.52 Beginning cash $1.45 938,700 1,426,824 896,490 $1.52 Inventory $1,362,665 Ending cash $1.52 1.736,280 2,639,146 PPE, net $1.52 Following are selected financial statement accounts for the parent: 4,302.270 $6,539,451 Total Assets Income statement Cost of good SIM Liabilities and Stockholders Equity 4, Econ Oprogress Account way. Euront PPE. 2.8.10 41331 sa 534,240 $812,045 $2,22 200 Current Liabilities $1.52 1,244,880 1,892,218 Stent of red in BOY 11000 Long-term Liabilities $1.52 2,17230 duty Our Long- Dividende 210,000 115.500 S1410 750 DOO 1985 72015 13.00 Common Stock $0.33 Sent of acum concom BOY con 262,500 SU Ourent 144,375 APIC $0.55 BOY con un S 2,050,650 3,512,565 Retained Earnings above 62,748 Cumulative translation adjustment plug Assume the following information: The purchase price for the subsidiary included an AAP asset relating to Land that the parent estimated was worth GBP200,000 more than its book value on the subsidiary's balance sheet Using the translated subsidiary financial statements provided above along with the parent's financial data prepare the "C" consolidation entry 4,302,270 56,539,451 Total Liabilities & Equity