Income Statement

pounds exchange rate US Dollars

rent revenue 100,800 2.34 $ 235,872
interest expense -14,800 2.34 $ (34,632)
depreciation expense -22,000 2.34 $ (51,480)
repair expense -4,800 2.35 $ (11,280)
Net Income 59,200 $ 138,480

Retained earnings
pounds exchange rate US Dollars
Retained earnings 1/1 0 $ -
Net income 59,200 i/s $ 138,480
Dividends -11000 2.38 $ (26,180)
Retained earnings 12/31 48200 $ 112,300

Balance sheet
pounds exchange rate US Dollars
Cash 68200 $ 2.38 $ 162,316
72000+148000-220000+84000-4800-11000
Accounts receivable 16800 $ 2.38 $ 39,984
Building 220000 $ 2.38 $ 523,600
Accumulated depreciation -22,000 $ 2.38 $ (52,360)
Total assets 283000 $ 673,540
Interest payable 14,800 $ 2.38 $ 35,224
note payable 148000 $ 2.38 $ 352,240
contributed capital 72000 $ 2.30 $ 165,600
retained earnings 48200 $ 112,300
Subtotal 283,000 From Above 665,364
translation adjustment $ 8,176.00
total liabilities and equity 283,000 673,540

Translation Adjustment
pounds exchange rate US Dollars
Beginning net assets 0 $ 2.30 $ -
increase in net assets
contributed capital 72000 $ 2.30 $ 165,600
net income 59,200 from i/s $ 138,480
decrase in net assets:
dividends declared -11000 from r/e $ (26,180)
ending net assets 120200 $ 277,900
ending net assets at exchange rate 120200 $ 2.38 $ 286,076
Translation Adjustment $ (8,176)
 Cash Flow statement
pounds exchange rate US Dollars
Operating activities
net income 59,200 $ 138,480.00
add:depreciation expense 22,000 $ 2.34 $ 51,480.00
less:increase in accounts receivable -16800 $ 2.34 $ (39,312.00)
add:increase in interest payab;e 14,800 $ 2.34 $ 34,632.00

cash flow from operating activities 79,200 $ 185,280.00

investing activities
purchase of building -220000 $ 2.30 $ (506,000.00)
cash flow from investing activities -220000 $ (506,000.00)
financing activities
capital contribution 72000 $ 2.30 $ 165,600.00
borrowing on note 148000 $ 2.30 $ 340,400.00
dividend -11000 $ 2.38 $ (26,180.00)

cash flow from financing activities 209000 $ 479,820.00

increase in cash 68,200 $ 159,100
effect of exchange rate on cash $ 3,216
beginning cash balance
ending cash balance 68,200 $ 162,316