Sullivan's Island Company began operating a subsidiary in a foreign country on January 1, 2017, by investing capital in the amount of 77,000 pounds. The subsidiary immediately borrowed 141,000 pounds on a five-year note with 10 percent interest payable annually beginning on January 1, 2018. The subsidiary then purchased for 218,000 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, 2017, the subsidiary rented the building for three years to a group of local attorneys for 8,200 pounds per month. By year-end, rent payments totaling 82,000 pounds had been received, and 16,400 pounds was in accounts receivable. On October 1, 3,500 pounds was paid for a repair made to the building. The subsidiary transferred a cash dividend of 12,700 pounds back to Sullivan's Island Company on December 31, 2017. The functional currency for the subsidiary is the pound. Currency exchange rates for 1 pound follow:

\fSULLIVAN'S ISLAND COMPANY Statement of Cash Flows Pounds Exchange Rate U.S. Dollars Operating Activities: Cash flow from operating activities Investing Activities: Cash flow from investing activities Financing Activities: Cash flow from financing activities Effect of exchange rate change on cash Beginning balance in cash Ending balance in cash