Giant Eagle Inc., a U.S.-based grocery store, established a subsidiary in Mexico (RetailMex S.A.) by investing Mex$25,000,000 on January 1, 2012, when the exchange rate was $0.25 per Mex$. The financial statements of RetailMex as of December 31, 2013, two years later, are as follows: Balance Sheet December 31, 2013 Assets Cash... Accounts receivable (net Inventory Equipment 1,000,000 1,650,000 4,250,000 12,500,000 (2,250,000) 36,000,000 (3,300,000) 3,000,000 Less: Accumulated depreciation . Less: Accumulated depreciation. Total assets Building Land 52,850,000 Liabilities and Stockholders' Equity Long-term debt. Capital stock Retained earnings.... 3,100,000 22,000,000 25,000,000 2,750,000 52,850,000 Total liabilities and stockholders' equity Statement of Income For the Year Ending December 31, 2013 Sales Cost of goods sol. Gross profit Depreciation expense - equipment Depreciation expense - building Other expenses... Income before tax... Tax Net income. 14,000,000 (6,000,000) 8,000,000 (1,250,000) (1,800,000) (850,000). 4,100,000 3,250,000 Giant Eagle Inc., a U.S.-based grocery store, established a subsidiary in Mexico (RetailMex S.A.) by investing Mex$25,000,000 on January 1, 2012, when the exchange rate was $0.25 per Mex$. The financial statements of RetailMex as of December 31, 2013, two years later, are as follows: Balance Sheet December 31, 2013 Assets Cash... Accounts receivable (net Inventory Equipment 1,000,000 1,650,000 4,250,000 12,500,000 (2,250,000) 36,000,000 (3,300,000) 3,000,000 Less: Accumulated depreciation . Less: Accumulated depreciation. Total assets Building Land 52,850,000 Liabilities and Stockholders' Equity Long-term debt. Capital stock Retained earnings.... 3,100,000 22,000,000 25,000,000 2,750,000 52,850,000 Total liabilities and stockholders' equity Statement of Income For the Year Ending December 31, 2013 Sales Cost of goods sol. Gross profit Depreciation expense - equipment Depreciation expense - building Other expenses... Income before tax... Tax Net income. 14,000,000 (6,000,000) 8,000,000 (1,250,000) (1,800,000) (850,000). 4,100,000 3,250,000