The U.S. parent company is preparing its consolidated financial statements for December 31, 20X4. The foreign company€™s local currency (LCU) is the functional currency. Information is presented in Data Set A and Data Set B.

Required
a. Select the appropriate exchange rate from the amounts presented in Data Set A to prepare the translation worksheet for each of the accounts presented in Data Set B.
b. Determine the direct exchange rate for January 1, 20X4.
c. Determine whether the U.S. dollar strengthened or weakened against the LCU during20X4.

Data Set A: Exchange Rate Date June 16, 20X1: date foreign company purchased January 1, 20X4: beginning of current year March 31, 20X4 June 12, 20X4 Average for year 20X4 November 1, 20X4 December 31, 20X4: end of current year LCU 0.74 0.80 0.87 0.86 0.85 0.84 0.83 8. No translation rate is applied 4 5 6. Data Set B a. Accounts receivable outstanding from sales on March 31, 20X4 b. Sales revenue earned during year c. Dividends declared on November 1, 20X4 d. Ending inventory balance from acquisitions through the year. e. Equipment purchased on March 31, 20X4 f. Depreciation expense on equipment. g. h. i. j. k. Common stock outstanding Dividends payable from dividends declared on June 12, 20X4 Accumulated Other Comprehensive Income balance from prior fiscal year Bond payable issued January 1, 20X4 Interest expense on the bond payable