P7-11 Shelton Ltd. records its transactions in euros since that is its functional currency but must present its financial statements in Canadian dollars as a requirement for the Canadian Securities and Exchange Commission. Shelton has a December 31 year end. Below is a trial balance for Shelton for 2013 in euros.
Sales revenue ........... €234,800
Dividend revenue ........... 17,000
Other income ............ 6,600
258,400
Cost of sales ............ (123,000)
Other expenses ........... (34,600)
(157,600)
Income before income tax ....... 100,800
Income tax expense ........ (32,000)
Net income ............ 68,800
Retained earnings (1/1/13) ....... 76,000
Total available for appropriation ..... 144,800
Interim dividend paid ......... (34,000)
Dividend declared ......... (16,000)
(50,000)
Retained earnings (31/12/13) ..... € 94,800
Current assets
Cash ............... € 1,000
Receivables ............. 27,000
Allowance for doubtful accounts .... (500)
Financial assets ............ 20,000
Inventory .............. 48,000
Total current assets ......... 95,500
Non-current assets
Plant and machinery ......... 100,000
Accumulated depreciation ....... (40,000)
Land ................ 99,300
Bond investments ........... 60,000
Investments in equity instruments .... 160,000
Total non-current assets ........ 379,300
Total assets ............ 474,800
Current liabilities
Dividend payable ........... 16,000
Provisions ............. 12,000
Bank overdraft —
Current tax liabilities ....... 11,000
Total current liabilities ........ 39,000
Non-current liabilities
Deferred tax liabilities ........ 13,000
Total non-current liabilities ...... 13,000
Total liabilities ............ 52,000
Net assets .............. €422,800
Equity
Share capital ............. €320,000
Retained earnings .......... 94,800
Other components of equity ....... 8,000
Total equity ............ €422,800
The following exchange rates exist for the euro relative to the Canadian dollar:
January 1, 2013 ....... C$1.00 = €1.315
Average 2013 ........ C$1.00 = €1.25
December 31, 2013 ...... C$1.00 = €1.2
The rate when the common stock was issued was C$1.00 = €1.18 and the beginning retained earnings was earned at the average exchange rate of C$1.00 = €1.22 The other component of equity balance was created on the last day of 2012 due to a fair value change in a financial asset on which an election was taken.
Required
Translate the Shelton financial statement into its presentation currency.