everything is attached.. Liverpool Company operates retail stores in Canada and an exporting business in London that specializes in buying and selling British tweeds. Document Preview: Liverpool Company operates retail stores in Canada and an exporting business in London that specializes in buying and selling British tweeds. The London subsidiary provided the following financial statements in pounds sterling to the Canadian parent company.LIVERPOOL COMPANY, London BranchStatement of Comprehensive IncomeFor the Year Ended December 31, 20X5Salesœ 2,300,000Cost of goods sold(1,200,000)Depreciation expense(300,000)Other expenses(300,000)Comprehensive incomeœ500,000LIVERPOOL COMPANY, London BranchStatement of Changes in EquityPartialRetained Earnings sectionFor the Year Ended December 31, 20X5Retained earnings January 1œ 850,000Comprehensive Income for the year500,000Less: Dividends declared and paid,December 31(200,000)Retained earnings December 31œ 1,150,000LIVERPOOL COMPANY, London BranchStatement of Financial PositionAs at December 31, 20X5Cash and receivablesœ 1,150,000Merchandise inventory450,000Property, plant, and equipment3,450,000Totalœ 5,050,000Current liabilitiesœ 700,000Long-term notes payable, due 31 December, 20X91,200,000Capital stock2,000,000Retained earnings1,150,000Totalœ 5,050,000Liverpool Company was incorporated on January 1, 1984, at which time an amount of property, plant, and equipment with a present (December 31, 20X5) Net Book Value of œ3,000,000 was purchased. Additional equipment was purchased December 31, 20X4 (20% of depreciation expense relates to this new equipment). The long-term notes were issued, to replace financing provided by the parent, on January 1, 20X4.Direct exchange rates for the pound sterling (1 $C/œ ) are:January 1, 1984$1C = $1.9180January 1, 19861.8365January 1, 20X41.6000Average for the fourth quarter 20X41.5612December 31, 20X4 / January 1, 20X51.5426December 31, 20X51.4730Average for 20X51.5093Average for the fourth quarter 20X51.4950The January 1, 20X5 retained earnings balance of the London Branch of the Liverpool Company correctly translated to Canadian dollars was $1,783,774. The beginning Attachments: Assignment.docx