BACKGROUND > Below is an income statement and balance sheet from a foreign subsidary, reported in Canadian Dollars (CNDS), the functional currency of the foreign subsidiary. REQUIRED > Translate the foreign currency statement to US Dollars using the exchange rates below. January Average Exchange Rate = 0.97 January 31 Period end rate- 0.94 January 15 Rate - 0.95 US Dollar historical value of common stock = 20,000 US Dollar value of retained earnings, beginning of period = 45,000 CNDS US $ INCOME STATEMENT SALES 50,000 COST OF GOODS SOLD (22,500) OTHER OPERATING EXPENSES (14,500) FOREIGN CURRENCY TRANSACTION LOSS (1,000) NET INCOME 12,000 BALANCE SHEET ASSETS CASH CASH - FOREIGN CURRENCY RECEIVABLES INVENTORY PLANT & EQUIPMENT ACCUMULATED DEPRECIATION TOTAL ASSETS 10,750 3,000 10,500 5,000 50,000 (7,500) 71,750 LIABILITIES ACCOUNTS PAYABLE BONDS PAYABLE TOTAL LIABILITIES 4,000 12,500 16,500 25,000 EQUITY COMMON STOCK RETAINED EARNINGS BEGINNING DIVIDEND DECLARED ON 1/15 CURRENT EARNINGS RETAINED EARNINGS - ENDING 26,250 (8,000) 12,000 30,250 OOO OIN FOREIGN CURRENCY TRANSLATION ADJUSTMENT TOTAL EQUITY 55,250 TOTAL LIABILITIES & EQUITY 71,750