Answered: accounting profit t

Business

Accounting

accounting profit t

International Financial Management

14th Edition

ISBN:9780357130698

Author:Madura

Publisher:Madura

Chapter1: Multinational Financial Management: An Overview

Section: Chapter Questions

Problem 23QA

See similar textbooks

Similar questions

Customer Latitude and Pricing The postal service of St. Vincent, an island in the West Indies, obtains a significant portion of its revenues from sales of special souvenir sheets to stamp collectors. The postal service purchases the souvenir sheets from a supplier for $0.80 each. St. Vincent has been selling the souvenir sheets for $8.00 each and ordinarily sells about 80,000 units. To test the market, the postal service recently priced a new souvenir sheet at $7.00 and sales increased to 93,600 units. Required: 1. What total contribution margin did the postal service earn when it sold 80,000 sheets at a price of $8.00 each? 2. By what percentage did the St. Vincent post office decrease its selling price? By what percentage did unit sales increase? (Round your answers to one-tenth of a percent.) 3. What total contribution margin did the postal service earn when it sold 93,600 sheets at a price of $7.00 each? 4. What was the postal service’s increase (decrease) in total contribution…
Toyota company with extensive car related operations in Oman sends the profits it generates in Oman every month to On an average the company converts 2 million Rials into dollar and then into yen every month for transmission to Japan. Toyota finance manager is worried about the extreme fluctuations in the dollar – yen rate. Write in only one sentence, how Toyota can stabilize its cash flows ?
Suppose that Nevada Co., a US-based MNC, makes regular, monthly purchases of materials from a German supplier named Spicurity. These regular payments are typically in the amount of 250,000 euros. Last month the exchange rate was $1.44 per euro. Nevada Co. only has cash reserves in dollars, while Spicurity only has cash reserves in euros. Suppose both companies use the same bank. In order to conduct this transaction last month, Nevada Co. required $ transaction reduced Nevada's account by this amount, denominated in dollars and credited it to Spicurity's account. 360,000.00 to pay for the materials. Thus, the bank handling the The bank then converted this amount to M
ABC Trading Company of Singapore purchases spices in bulk from around the world, packages them into consumer size quantities and sells them through sales affiliates in Hong Kong and the Unites States. For a recent month, the following payments matrix of inter-affiliate cash flows, stated in Singapore dollars, was forecasted. ABC Trading Company Payments Matrix (S$000) Receipts by: Singapore Hong Kong U.S. S$170,000 S$152,000 S$405,000 Disbursements by: S$322,000 Singapore 16 22 Hong Kong 80 50 Calculate, in Singapore dollars, the amount that the inter-affiliate foreign exchange transaction will be reduced by with multilateral netting. U.S. 110 44
Merchant Abdul Rahman imported 1,000 baby strollers from abroad, at a value of 200,000 shekels, in addition to the costs of shipping the goods carried by Merchant Abdul Rahman, at a value of 10,000 shekels. If you know that the rate of customs duties = 10% + 5 shekels for each cart. The purchase tax rate is 20%, and the price increase = 25%. Calculate each of the following: Please show the solution method1-Import price of the goods2-All taxes due on the goods (with full solution to be shown
For Questions 13-15 ECQ Incorporated imported an article from South Korea. The invoice value of the imported article was $50,000 ($1=P50). The following were incurred in connection with the importation: Bank charges in connection with the importation of goods Expenses in opening letters of credits Interest paid on trust receipts issued by banks for imported goods Wharfage dues Arrastre charges Brokerage fees Interest charges on loans secured to finance importation Facilitation fee P150,000 100,000 15,000 70,000 80,000 25,000 50,000 10,000 The imported article was subject to P500,000 customs duties and to P300,000 excise tax. After the release from the Bureau of Customs, ECQ Incorporated paid P50,000 (net of VAT) for trucking to a warehouse in Quezon City. It also paid warehousing rent of P80,000, net of VAT. 13. How much are the total charges prior to release from Customs custody? a. P500,000 b. P490,000 c. P440,000 d. P425,000 14. How much is the VAT on importation? a. P456,000 b.…
Gerard Appliances, Inc., is a small manufacturer of washing machines and dryers. It sells its products to large, established discount retailers that market the appliances under their own names. Gerard generally sells the appliances on trade credit terms of n/60, but if a customer wants a longer term, it will accept a note with a term of up to nine months. At present, the company is having cash flow troubles and needs $10 million immediately. Its Cash balance is $400,000, its Accounts Receivable balance is $4.6 million, and its Notes Receivable balance is $7.4 million. (a) How might Gerard Appliances use its accounts receivable and notes receivable to raise the cash it needs? (b) What are its prospects for raising the needed cash?
Currency Exchange Rates Custom Shutters, Inc., manufactures plantation shutters according to customer order. The company has a reputation for producing excellent quality shutters that fit virtually any size or shape of window. Sales are made in all 50 states. On July 1, Custom Shutters received orders from contractors in Switzerland and Japan. Lee Mills, president and co-owner of Custom Shutters, was delighted. The Swiss order is for shutters priced at $64,000. The order is due in Geneva on September 1, with payment due in full on October 1. The Japanese order is for shutters priced at $124,000. It is due in Tokyo on August 1, with payment due in full on October 1. Both orders are to be paid in the customer's currency. The Swiss customer has a reputation in the industry for late payment, and it could take as long as 6 months. Lee has never received payment in foreign currency before. He had his accountant prepare the following table of exchange rates: Exchange Rate for $1 Spot rate…
International financial management: MCQ An UK- based MNC expect to receive £20,000 from domestic operations and 20,000 Euro (€) from a business in Belgium. If the pound’s value is €1.05, the expected total cash flows in pound are: (a) £41,000 (b) £39,470 (c) £45,000 (d) none of the above
KS Inc. produces a product in the United Kingdom at a cost of £0.55 per unit which it then sells in France for €1.25 per unit. If in the currency markets, 1 U.S. dollar = £0.6373 and 1 U.S. dollar = €1.0279, how much profit is realized by KS Inc. on each unit of product sold? * $0.7857 $0.3531 $0.2571 $0.1095 When the supply for money increases and the demand for money reduces, there will be * A fall in the level of prices An increase in the rate of interest A fall in the level of demand A decrease in the rate of interest
Major Manufacturing currently has one bank account located in New York to handle all of its collections. The firm keeps an additional cash balance with the bank of $270,000 to pay for these services. It is considering opening a bank account with West Coast National Bank to speed up collections from its many California-based customers. Major estimates that the West Coast account would reduce collection time by 1 day on the $1.60 million a day of business that it does with its California-based customers. If it opens the account, it can reduce the balance with its New York bank to $190,000 because it will do less business in New York. However, West Coast will require an additional cash balance of $190,000. What would be the net daily benefit of opening the new account? (Enter your answer in dollars, not millions.) Net daily benefit
BIC Co. is residing in Spain and exports bottles of wine in its Mexican Market for 225 Mexican Peso each bottle which costs BIC Co. 50 Pounds from wine distillery in United Kingdom. Exchange rates identified are the following for June 10, 2022:· 1 Euro = 15 Mexican Peso = 10 PoundsHow much total gross profit in Euro doesBIC Co. made for June 10, 2022 considering the firm exported 3,000 wine bottles?