Palmerston company | Accounting homework help

Issues
1a. What is the translation of the foreign subsidiary’s financial statements into U.S. dollars at December 31, Year 1?  Show your computations.
1b. What is (are) the translation adjustment(s)?
2a. What is the remeasurement of the foreign subsidiary’s financial statements into U.S. dollars assuming that the U.S. dollar is the subsidiary’s functional currency?
Show your computations.
2b. What is (are) the remeasurement gain(s)/loss(es)?
3a. What are differences in the computations of the ratios: liquidity (current & quick); activity (accounts receivable turnover & inventory turnover); solvency (debt-to-equity & times-interest-earned); & profitably (gross profit margin, return on sales, return on total assets & return on stockholders’ equity)?
Show your computations.
3b. How would the differences you have noted affect your decision to extend short-term credit, extend long-term credit and recommend purchasing or selling the parent company’s stock?