1-Assume that our subsidiarys income statement in Euros () is reported as follows for the year:

Income statement:	In Euros ()
Sales	2,500,000
Cost of goods sold	(1,600,000)
Gross Profit	900,000
Operating expenses	(540,000)
Net income	360,000

Also assume the following exchange rates:

	$ /
BOY Rate	$1.30
EOY rate	$1.40
Avg. rate	$1.35

Required: Translate the income statement into $US using the current-rate method.