This is the excel sheet for the current year data.

Prepare Sub Co's December 31, 2021 Statement of Cash Flows, assuming the following: No plant and equipment was sold during 2021 No bonds payable was issued (i.e., borrowed) during 2021 No common stock was issued during 2021 No common stock was purchased from stockholders (i.e., treasury stock) Any effects of foreign exchange rate changes are classified on the Statement of Cash Flows as "Effects of foreign exchange rate changes (see the Discussion Case - FSA (Data) Excel file for an example of the format). Foreign Currency Accounting Facts: Parent Co, a U.S. firm, paid $525,000 cash to acquire all of the stock of the British firm Sub Co when the book value of Sub's net assets was equal to fair value. This business combination occurred on December 31, 2020, when the exchange rate for British pounds was $1.50. During 2021 the British pound weakened against the U.S. dollar, resulting in a year- end current exchange rate of $1.47. Average exchange rates for 2021 were $1.49. Sub Co paid a 20,000 dividend to Parent Co on December 1, 2021 when the exchange rate was $1.48 per British pound. The only intercompany transaction between the firms was an $84,000 (56,000) noninterest-bearing advance by Sub Co to Parent Co that occurred on January 4, 2021 when the exchange rate was still $1.50. The advance is denominated in U.S. dollars. Sub Co's functional currency is British pounds, so the advance to Parent Co is a foreign currency transaction from Sub Co's perspective, but not to Parent Co because it is denominated in U.S. dollars. Sub Co's assets, liabilities and stockholder's equity at acquisition were as follows: British Pounds Exchange Rate U.S. Dollars Assets Cash Accounts receivable Inventory Plant assets, net $1.50 1.50 140,000 40,000 120,000 80,000 $210,000 60,000 180,000 120,000 1.50 1.50 Total assets 380,000 $570,000 Liabilities & Stockholder's Equity Accounts payable Bonds payable Common stock Retained earnings Total liabilities & stockholder's equity 30,000 100,000 200,000 50,000 380,000 $1.50 1.50 1.50 1.50 $45,000 150,000 300,000 75,000 $570,000 Sub Co adjusted its advance to Parent Co at year-end 2021 to reflect the $1.47 current exchange rate. Sub Co recorded an exchange gain because there is no evidence that the advance is of a long-term investment nature. The entry recorded on Sub Co's books was: DR CR 1,143 1,143 Advance to parent Exchange gain To adjust receivable denominated in U.S. dollars (($84,000 / $1.47) - 56,000) - Foreign Currency Accounting Trial Balance Exchange Rate Trial Balance Sub Co Trial Balance in British Pounds Debits Cash Accounts receivable Inventory Plant assets Advance to parent Cost of sales Depreciation expense Wages and salaries expense Other expenses Dividends declared 110,000 $ 47,250 113,000 100,000 57,143 340,000 14,285 78,545 57,460 20,000 937,683 1.50 $ 165,000 70,875 169,500 150,000 85,715 510,000 21,428 117,818 86,190 30,000 1,406,525 Credits Accounts payable Bonds payable Common stock Retained earnings Sales Exchange gain (on the advance to parent) 46,540 100,000 200,000 50,000 540,000 1,143 937,683 69,810 150,000 300,000 75,000 810,000 1,715 1,406,525 Prepare Sub Co's December 31, 2021 Statement of Cash Flows, assuming the following: No plant and equipment was sold during 2021 No bonds payable was issued (i.e., borrowed) during 2021 No common stock was issued during 2021 No common stock was purchased from stockholders (i.e., treasury stock) Any effects of foreign exchange rate changes are classified on the Statement of Cash Flows as "Effects of foreign exchange rate changes (see the Discussion Case - FSA (Data) Excel file for an example of the format). Foreign Currency Accounting Facts: Parent Co, a U.S. firm, paid $525,000 cash to acquire all of the stock of the British firm Sub Co when the book value of Sub's net assets was equal to fair value. This business combination occurred on December 31, 2020, when the exchange rate for British pounds was $1.50. During 2021 the British pound weakened against the U.S. dollar, resulting in a year- end current exchange rate of $1.47. Average exchange rates for 2021 were $1.49. Sub Co paid a 20,000 dividend to Parent Co on December 1, 2021 when the exchange rate was $1.48 per British pound. The only intercompany transaction between the firms was an $84,000 (56,000) noninterest-bearing advance by Sub Co to Parent Co that occurred on January 4, 2021 when the exchange rate was still $1.50. The advance is denominated in U.S. dollars. Sub Co's functional currency is British pounds, so the advance to Parent Co is a foreign currency transaction from Sub Co's perspective, but not to Parent Co because it is denominated in U.S. dollars. Sub Co's assets, liabilities and stockholder's equity at acquisition were as follows: British Pounds Exchange Rate U.S. Dollars Assets Cash Accounts receivable Inventory Plant assets, net $1.50 1.50 140,000 40,000 120,000 80,000 $210,000 60,000 180,000 120,000 1.50 1.50 Total assets 380,000 $570,000 Liabilities & Stockholder's Equity Accounts payable Bonds payable Common stock Retained earnings Total liabilities & stockholder's equity 30,000 100,000 200,000 50,000 380,000 $1.50 1.50 1.50 1.50 $45,000 150,000 300,000 75,000 $570,000 Sub Co adjusted its advance to Parent Co at year-end 2021 to reflect the $1.47 current exchange rate. Sub Co recorded an exchange gain because there is no evidence that the advance is of a long-term investment nature. The entry recorded on Sub Co's books was: DR CR 1,143 1,143 Advance to parent Exchange gain To adjust receivable denominated in U.S. dollars (($84,000 / $1.47) - 56,000) - Foreign Currency Accounting Trial Balance Exchange Rate Trial Balance Sub Co Trial Balance in British Pounds Debits Cash Accounts receivable Inventory Plant assets Advance to parent Cost of sales Depreciation expense Wages and salaries expense Other expenses Dividends declared 110,000 $ 47,250 113,000 100,000 57,143 340,000 14,285 78,545 57,460 20,000 937,683 1.50 $ 165,000 70,875 169,500 150,000 85,715 510,000 21,428 117,818 86,190 30,000 1,406,525 Credits Accounts payable Bonds payable Common stock Retained earnings Sales Exchange gain (on the advance to parent) 46,540 100,000 200,000 50,000 540,000 1,143 937,683 69,810 150,000 300,000 75,000 810,000 1,715 1,406,525