Problem 4. Ding Inc., a US company, acquired a subsidiary in Switzerland on January 1, 2017. The subsidiary's trial balance for January 1 and December 31 of 2017 in Swiss francs (CHF) are as follows: 000 (In thousands CHF) Cash Inventory Plant and equipment, net Accounts and notes payable Common stock Retained earnings, Jan. 1 Sales revenue Cost of goods sold Operation expenses Dividends Total Dr (Cr) 1/1/2017 12/31/2017 25,000 30,000 60,000 55.000 150,000 175,000 (125,000) (120,000) (30,000) (30,000) (80,000) (80,000) (500,000) 375,000 75,000 20,000 CHF O CHFO Additional information: 1. Included in operating expenses is depreciation expense of CHF5,000. 2. Plant and equipment of CHF30,000 was purchased for cash during 2017, when the exchange rate was $0.50. Depreciation of CHF2,000 was taken on this purchase during 2017. 3. The ending inventory was purchased during December. Revenues, purchases, and operating expenses other than dep and operating expenses other than depreciation expense occurred evenly during the year. s were declared and paid on November 20, 2017. when the exchange rate was 0.58. 6. Exchange rates for 2017 were: 1/1/2017 $0.49 Average rate 2017 0.52 Average rate Dec. 2017 0.54 12/31/2017 0.55 Instructions: a. Assume the functional currency of the subsidiary is the Swiss francs, translate the subsidiary's income statement and balance sheet on December 31, 2017. 6. Assume the functional currency of the subsidiary is the US dollar, translate the subsidiary's income statement and balance sheet on December 31, 2017