Sullivan's Island Company began operating a subsidiary in a foreign country on January 1, 2020, by investing capital in the amount of 63,000 pounds. The subsidiary immediately borrowed 130,000 pounds on a five-year note with 10 percent interest payable annually beginning on January 1, 2021. The subsidiary then purchased for 193,000 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 8,000 pounds per month. By year-end, rent payments totaling 80,000 pounds had been received, and 16,000 pounds was in accounts receivable. On October 1, 2020, 4,200 pounds was paid for a repair made to the building. The subsidiary transferred a cash dividend of 14,000 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 $ 3.40 3.45 3.48 3.44 1 Pound 1 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.) Answer is not complete. SULLIVAN'S ISLAND COMPANY Statement of Cash Flows U.S. Pounds Exchange Rate Dollars Operating Activities: Net income 59,500 $ 204,680 Add: Depreciation expenses 19,300 $ 3.44 66,392 Less: Increase in accounts receivable (16,000) $ 3.48 X (55,680) Add: Increase in interest payable 13,000 $ 3.48 X 45,240 x CA 75,800 260,632 Cash flow from operating activities Investing Activities: Purchase of building (193,000) 3.40 (656,200) $ (193,000) $ (656,200) Cash flow from investing activities Financing Activities: Capital contribution Borrowing on note Dividends 63,000 130,000 (14,000) $ $ 3.48 X 3.48 X 3.44 219,240 452,400 (48,160) Cash flow from financing activities Increase in cash Effect of exchange rate change on cash Beginning balance in cash Ending balance in cash 179,000 61,800 12,848 623,480 227,912 % 74,648 $ 227,912