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1.On Jan, 1 2014, Peter Corp. (a U.S. based company) formed a new subsidiary in Saudi Arabia, Saeed Inc., with an initial investment of 30,000 SAR.Assume Saeed Inc.Purchases inventory evenly throughout 2014. The ending inventory is purchased Nov. 30, 2014.Uses straight-line depreciation on fixed assets.Declares and pays dividends on Nov. 30, 2014.Purchased the fixed assets on April 1, 2014.Uses SAR as the functional currency.Exchange Rates are given:Jan 1, 2014 0.260April 1, 2014 0.255Nov. 30, 2014 0.240Dec. 31, 2014 0.238 REQUIREDPrepare a schedule to translate Saeed’s financial statements on Dec. 31, 2014 to U.S. dollars. (2 Marks)AccountsSARCash5000Account Receivable12000Inventory32000Note Receivables5000Plant & Equipment70000Cost of Goods sold32000Depreciation2000Other Expenses18000Dividends16000Total Debits192000ACC. OC – Translation Adjustment (Debit)Adjusted Total CreditAccumulated Depreciation2000Account Payable12000Bonds Payable36000Mortgage Payable46000Common Stock30000Sales66000Total Credits192000