Translation of financial statements (2 years) Assume that your company owns a subsidiary operating in Australia. The subsidiary maintains its books in the Australian Dollar (AUD) as its functional currency. Following are the subsidiary's financial statements (in AUD) for the prior and most recent years: in AUD) Income statement Sales Prior Year Current Year Cost of goods sold Gross profi Operating expenses 7,875,000 9,450,000 (4,725,000) (5,670,000) 3,150,000 3,780,000 (2,047,500) 2,457,000) 102500 1,323,000 Net income Statement of retained earnings BOY retained earnings Net income Dividends Ending retained earnings Balance sheet: Assets Cash Accounts receivable Inventory Property, plant & equipment, net Total assets Liabilities and stockholders' equity Current liabilities Long-term liabil ities Common stock APIC Retained earnings Total liabilities and equity 3,969,000 4961,250 1,102,500 1,323,000 (110250) (132,300) 4,961,250 6,151,950 1,002,960 2,689,470 1,827,000 2,192,400 2,346,750 2,816,100 5,649,840 5,208,840 10,826,550 2,906,810 1,335,600 1,602,720 3,112,200 3,734,640 630,000 787,500 4,961,250 6,151,950 10,826,550 12,906,810 630,000 787,500