Sullivan's Island Company began operating a subsidiary in a foreign country on January 1, 2020, by investing capital in the amount of 80,000 pounds. The subsidiary immediately borrowed 154,000 pounds on a five-year note with 10 percent interest payable annually beginning on January 1, 2021. The subsidiary then purchased for 234,000 pounds a building that had a 10-year expected life and no salvage value and is to be depreciated using the straight-line method. Also on January 1, 2020, the subsidiary rented the building for three years to a group of local attorneys for 8,600 pounds per month. By year-end, rent payments totaling 86,000 pounds had been received, and 17,200 pounds was in accounts receivable. On October 1, 2020, 3,600 pounds was paid for a repair made to the building. The subsidiary transferred a cash dividend of 11,000 pounds back to Sullivan's Island Company on December 31, 2020. The functional currency for the subsidiary is the pound. Currency exchange rates for 1 pound follow: January 1, 2020 October 1, 2020 December 31, 2020 Average for 2020 $ 3.50 - 3.55 - 3.58 - 3.54 - 1 Pound 1 1 Prepare a statement of cash flows in pounds for Sullivan's Island Company's foreign subsidiary, and then translate this statement into U.S. dollars. (Round your exchange rate answers to 2 decimal places. Amounts to be deducted and cash outflows should be indicated with minus sign.) U.S. Dollars SULLIVAN'S ISLAND COMPANY Statement of Cash Flows Pounds Exchange Rate Operating Activities: Net income Add: Depreciation expenses Less: Increase in accounts receivable Add: Increase in interest payable 0 0 Cash flow from operating activities Investing Activities: Purchase of building $ 0 0 Cash flow from investing activities Financing Activities: Capital contribution Borrowing on note DI Cash flow from financing activities 0 0 Effect of exchange rate change on cash Beginning balance in cash Ending balance in cash 0 $ 0