Use the Following Information to Answer Questions US $/C$ Exchange Rates Are

Use the following information to answer Questions.
Oceanic, Inc. is a Canadian subsidiary of a U.S. company. The subsidiary began operations at the beginning of the current year, with assets consisting of a cash balance of C$400,000, acquired by issuing stock. Oceanic's trial balance at the end of the year is as follows, in Canadian dollars:
$$\begin{array} { | l | c | } \hline & \begin{array} { c } \text { December 31, 2020 } \\\text { Dr (Cr) }\end{array} \\\hline \text { Cash } & \text { C\$ } 30,000 \\\hline \text { Receivables } & 23,500 \\\hline \text { Inventories } & 42,500 \\\hline \text { Land } & 22,000 \\\hline \text { Equipment [net\} } & 408,800 \\\hline \text { Current payables } & \{ 102,000 \} \\\hline \text { Capital stock } & \{ 400,000 \} \\\hline \text { Retained earnings, beginning } & - \\\hline \text { Sales revenue } & \{ 404,000 \} \\\hline \text { Cost of sales } & 333,000 \\\hline \text { Depreciation expense } & 27,500 \\\hline \text { Other expenses } & 18,700 \\\hline \text { Total } & \text { C\$ }\quad0 \\\hline\end{array}$$ US $/C$ exchange rates are:
$$\begin{array} { l r } \text { Beginning of year } & \$ 0.75 \\\text { Average for year } & 0.73 \\\text { End of year } & 0.70\end{array}$$ The land and equipment were acquired when the exchange rate was $0.75. Merchandise purchases, sales and other expenses occurred evenly over the year. The ending inventory was purchased when the exchange rate was $0.72. Depreciation expense relates to the equipment.
-Assume the functional currency of Oceanic is the Canadian dollar.
Required
a. Prepare Oceanic's end-of-year trial balance, in U.S. dollars. Show a separate schedule calculating the conversion gain or loss for the year.
b. Compute the following ratios, for both the Canadian dollar balances and the U.S. dollar balances:
(1) Current ratio
(2) Debt to assets ratio
(3) Gross profit percentage
Round your answers to the nearest tenth of a percent. Comment on similarities and differences between the local currency and converted ratios.