Exchange Pounds Rate U.S. $ Sales 15,000 Cost of goods sold (9,000) Gross profit 6,000 - Selling

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Exchange Pounds Rate U.S. $ Sales 15,000 Cost of goods sold (9,000) Gross profit 6,000 - Selling and administrative expense (3,000) Depreciation expense (1,000) Income before tax 2,000 - Income taxes (600) Net income 1,400 - Plus: Retained earnings, 1/1/Y1 - - Retained earnings, 12/31/Y1 1,400 -

Prepare Balance Sheet.