Translation of financial statements and consolidation of a foreign subsidiary (no amortization of AAP) Assume that your company owns a subsidiary operating in Great Britain. The subsidiary maintains its books in the British pound (GBP) as its functional currency. Following are the subsidiarys financial statements (in GBP) for the most recent year:

(in GBP) (in GBP) (in GBP) Statement of Cash Flows: Net Income Change in accounts Income Statement: Balance Sheet: Sales 2,730,000 Assets 382,200 (1,638,000) Cash 776,958 (105,560) (135,590) 77,168 Cost of Goods Sold receivable Change in inventories Change in current liabilities Net cash from operating Gross profit 1,092,000 Accounts receivable 633,360 Operating expenses (709,800) Inventory 813,540 382,200 Net income Property, plant, and 218,218 activities equipment (PPE), net 1,504,776 Total assets 3,728,634 Statement of retained Change in PPE, net (139,776) earnings Liabilities and stockholders equity Net cash from investing activities BOY ret. earnings 1,433,250 (139,776) Net income 382,200 Curr. liabilities 463,008 Dividends (38,220 L-T liabilities 1,078,896 Change in long-term debt 179,816 EOY ret. earnings 1,777,230 Common stock 182,000 Diidends (38,220) Net cash from financing activities 227,500 1,777,230 3,728,634 Net change in cash APIC 141,596 Ret. earnings Total liabilities and equity 220,038 556,920 776,958 Beginning cash Ending cash The relevant exchange rates for the $US value of the British pound (GBP) are as follows BOY rate EOY rate Avg. rate PPE purchase date rate LTD borrowing date rate Dividend rate $1.50 $1.57 $1.53 $1.54 $1.54 $1.55 Historical rate (common stock and APIC) $0.60 HINT: For all parts of this problem, use a negative sign with your answers to indicate a reduction. Elimination Entries Dr Cr Consolidated 0 X 0 X 584,766 0 X 2,535,897 0 X 59,241 0 X (17,474) 157,517 14,000 0 X 0 X 0 X 0 X 683,042 2,764,123 300,000 300,000 4,000 0 X 0 X 09,200 0 X 36,500 0 X 0 X 0 X 3,820,406$3,820,406 0 X