Helvatia GmbH is a Swiss company which is a wholly owned subsidiary of Corolli, a UK company. Helvatia GmbH was formed on 1 November 2005 to purchase and manage a property in Zürich in Switzerland. The reporting and functional currency of Helvatia GmbH is the Swiss franc (CHF).
As a financial accountant in Corolli you are converting the financial statements of Helvatia GmbH into £ sterling in order to be consolidated with the results of Corolli which reports in £s.
The following are the summarized income statements and balance sheet (in thousands of Swiss francs) of Helvatia GmbH:
Helvatia GmbH income statement and Retained Earnings for
The year ended 31 October 2007
CHF (000)
Revenue .................. 8,800
Depreciation .............. (1,370)
Other operating expenses ......... (1,900)
Net income ................ 5,530
Retained earnings at 1 November 2006 ..... 3,760
9,290
Dividends paid ............. (1,000)
Retained earnings at 31 October 2007 ...... 8,290

The following exchange rates are available:
1 Swiss franc = £
At 1 November 2005 ............... 0.40
At 1 November 2006 ............... 0.55
At 30 November 2006 .............. 0.53
At 31 January 2007 ................ 0.53
At 31 October 2007 ................ 0.45
Weighted average for the year ended 31 October 2007 ... 0.50

The non-current assets and mortgage loan of Helvatia GmbH as at 31 October 2006 all date from 1 November 2005. Helvatia GmbH purchased additional land and increased the mortgage loan on 31 January 2007. There were no other purchases of non-current assets. Land is not depreciated but the building is depreciated at 10% a year using the reducing balance method. Helvatia GmbH€™s dividends were paid on 31 January 2007.
The sterling equivalent of Helvatia GmbH€™s retained earnings as at 31 October 2006 was £1,222,000.

Required:
Prepare the following statements for Helvatia GmbH in £000 sterling:
(a) A summarised income statement for the year ended 31 October 2007.
(b) A summarised balance sheet as at 31 October 2007.
(c) A statement of cash flows for the year ended 31 October 2007 using the indirect method. Additional notes are notrequired.

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Helvatia GmbH balance sheet as at 31 October 2007 CHF (000) 2006 CHF (000) Assets Non-current assets Land Buildings 6,300 12,330 8,630 3,300 13,700 7000 Current assets Receivables Cash 550 5,610 ,550 610 6,160 24,790 2,160 19,160 Liabilities and equity Non-current liabilities Mortgage loan Current liabilities Payables Equity Issued share capital Retained earnings 0,800 0,000 700 400 5,000 8,290 5,000 3,760 3,290 24,790 8,760 19,160