Sullivan's Island Company began operating a subsidiary in a foreign country on January 1, 2020. by Investing capital in the amount of 60,000 pounds. The subsidiary immediately borrowed 140,000 pounds on a five-year note with 10 percent interest payable annually beginning on January 1, 2021. The subsidiary then purchased for 200,000 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, 4,000 pounds was paid for a repair made to the building. The subsidiary transferred a cash dividend of 12,000 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, 2029 October 1, 2020 December 31, 2920 Average for 2020 $ 2.80 = 2.05 = 2.88 = 2.84 = 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.) SULLIVAN'S ISLAND COMPANY Statement of Cash Flows Pounds Exchange Rate U.S. Dollars Operating Activities: Net income Add: Depreciation expenses S 2.04 Less: Increase in accounts receivable Add: Increase in interest payable 0 Cash flow from operating activities Investing Activities: Purchase of building 0 S s 0 Cash flow from investing activities Financing Activities Capital contribution Borrowing on note Dividends S 2.00 2.05 S S S 2.08 Cash flow from financing activities 0 0 Increase in cash Effect of exchange rate change on cash Beginning balance in cash Ending balance in cash S