Sullivan's Island Company began operating a subsidiary in a foreign country on January $1,2024,$ by investing capital in the amount of $73,000$ pounds. The subsidiary immediately borrowed $139,000$ pounds on a five$-$year note with $10$ percent interest payable annually beginning on January $1,2025.$ The subsidiary then purchased for $212,000$ 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 $1,2024,$ the subsidiary rented the building for three years to a group of local attorneys for $7,200$ pounds per month. By year$-$end, rent payments totaling $72,000$ pounds had been received, and $14,400$ pounds was in accounts receivable. On October $1,2024,3,400$ pounds was paid for a repair made to the building. The subsidiary transferred a cash dividend of $12,200$ pounds back to Sullivan's Island Company on December $31,2024.$ The functional currency for the subsidiary is the pound. Currency exchange rates for $1$ pound follow:

January $1,2024$ $ $3\mathrm{.}60=1$ Pound

October $1,20243\mathrm{.}65=1$ Pound

December $31,20243\mathrm{.}68=1$ Pound

Average for $20243\mathrm{.}64=1$ Pound

Required:

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.

Note: Round your exchange rate answers to $2$ decimal places. Amounts to be deducted and cash outflows should be indicated with minus sign.

SULLIVAN'S ISLAND COMPANY

Statement of Cash Flows

$\backslash$table$[[,$Pounds,Exchange Rate,U$.$S$.$ Dollars,$],[,,,,],[,,,,],[,,,,],[$Cash flow from operating activities,,,,$],[,,,,],[,,,,],[,,,,],[,,,,],[,,,,],[,,,,],[,,,,],[,,,,],[,,,,],[,,,,],[,,,,],[,,,,],[,,,,],[,,,,]]$

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