TRANSLATION OF FOREIGN SUBSIDIARIES

On December 31, 2019, Walker Enterprises paid $24,000,000 for 100% of the outstanding shares of Clarke Corporation. Clarkes fair values approximated its book values on that date.

Clarke's comparative balance sheets for December 31, 2019, and 2020 (in U.S. Dollars) are shown below:

Clarke paid US$200,000 in dividends on September 30, 2020. The plant and equipment was purchased in 2018 when the exchange rate was US$1 = CDN $1.278. Inventories on hand at the end of 2020 were purchased when the exchange rate was US$1 = CDN$1.295. Sales, purchases and other expenses occurred evenly throughout the year.

Cash Inventory Plant and Equipment (Net) Total Assets Current Liabilities Bonds Payable (due Dec 31, 2026) Common Shares Retained Earnings Total Liabilities and Equity 2020 $ 16,000,000 4,000,000 3.000,000 $23,000,000 $ 2,200,000 10,000,000 8,000,000 2,800,000 $23,000,000 2019 $15,000,000 6,000,000 3,600,000 $24,600,000 $ 4,600,000 10,000,000 8,000,000 2,000,000 $24,600,000 Income Statement for the Year ended December 31, 2020 (in U.S. Dollars) Sales $10.400,000 Cost of Goods Sold 8,000,000 Depreciation Expense 600,000 Other Expenses 800,000 Net Income $ 1,000,000 Other information - Exchange Rates December 31, 2019: US $1 = CDN $1.2850 September 30, 2020: US $1 = CDN $1.2975 December 31, 2020: US $1 = CDN $1.30 Average for 2020: US $1 = CDN $1.29 Cash Inventory Plant and Equipment (Net) Total Assets Current Liabilities Bonds Payable (due Dec 31, 2026) Common Shares Retained Earnings Total Liabilities and Equity 2020 $ 16,000,000 4,000,000 3.000,000 $23,000,000 $ 2,200,000 10,000,000 8,000,000 2,800,000 $23,000,000 2019 $15,000,000 6,000,000 3,600,000 $24,600,000 $ 4,600,000 10,000,000 8,000,000 2,000,000 $24,600,000 Income Statement for the Year ended December 31, 2020 (in U.S. Dollars) Sales $10.400,000 Cost of Goods Sold 8,000,000 Depreciation Expense 600,000 Other Expenses 800,000 Net Income $ 1,000,000 Other information - Exchange Rates December 31, 2019: US $1 = CDN $1.2850 September 30, 2020: US $1 = CDN $1.2975 December 31, 2020: US $1 = CDN $1.30 Average for 2020: US $1 = CDN $1.29