Since we are using the current rate method, the items in the income statement are translated at the average exchange rate. The average rate is (2.5 + 3) / 2 = 2.75 Australian dollars = $1.
Income Statement (in $)
|
Sales (3,500 / 2.75) |
$1,272 |
|
Costs (2,900 / 2.75) |
$1,055 |
| Net Income |
$217 |
