Sales revenue 56,880 2 July 22 Dollars receivable from exchange broker ($) Foreign currency payable to exchange broker (£) 58,680 58,680 3 September 20 Accounts receivable (£) Foreign currency transaction gain 1,152 1,152 4 September 20 Foreign currency payable to exchange broker (£) 648 X Foreign currency transaction gain 648 X 5 September 20 Foreign currency units (£) Accounts receivable (£) 58,032 58,032 6 September 20 Foreign currency payable to exchange broker (£) Foreign currency units (£) 58,032 58,032 7 September 20 Cash 58,680x Dollars receivable from exchange broker ($) 58,680 x

Sales revenue 56,880 2 July 22 Dollars receivable from exchange broker ($) Foreign currency payable to exchange broker (£) 58,680 58,680 3 September 20 Accounts receivable (£) Foreign currency transaction gain 1,152 1,152 4 September 20 Foreign currency payable to exchange broker (£) 648 X Foreign currency transaction gain 648 X 5 September 20 Foreign currency units (£) Accounts receivable (£) 58,032 58,032 6 September 20 Foreign currency payable to exchange broker (£) Foreign currency units (£) 58,032 58,032 7 September 20 Cash 58,680x Dollars receivable from exchange broker ($) 58,680 x

Fundamentals of Financial Management, Concise Edition (MindTap Course List)

9th Edition

ISBN:9781305635937

Author:Eugene F. Brigham, Joel F. Houston

Publisher:Eugene F. Brigham, Joel F. Houston

Chapter17: Multinational Financial Management

Section: Chapter Questions

Problem 1DQ: DISCUSSION QUESTIONS Recreate Table 17.1 for the following currencies: Australian dollar, British...

See similar textbooks

Similar questions

ICE Currency Exchange Sell rate C$1.3557 US$1 C$1.7569 / £1 C$1.5696 / €1 Buy rate Sell rate C$1.2833 / US$1 C$1.6368 / £1 C$1.4553 / €1 C$1.3675 / US$1 C$1.7591 £1 C$1.5772 / €1 Mid-rate C$1.3202 US$1 C$1.7046/ £1 C$1.5211 €1 Royal Bank Buy rate C$1.2847 US$1 C$1.6657 £1 C$1.4752 / €1 Based on the exchange rates in the table, how many fewer Canadian dollars will you receive if you convert €96 at ICE instead of at the Royal Bank? On any currency exchange transaction, ICE applies a C$3.50 service charge. (Do not round your intermediate calculations. Round your answer to two decimal places.) C$ fewer from ICE 13
ok -nces The following are the foreign currency positions of an H, expressed in the foreign currency: Assets Liabilities FX Bought FX Sold Sf 127,500 Sf 51,000 Sf 10, 200 Sf 15,300 £ 38,168 £ 16,794 £ 11,450 £. 15,267 ¥7,869,885 ¥3, 147,954 ¥1, 259, 181 ¥9, 233,998 Currency Swiss franc (Sf) British pound (£) Japanese yen (V) The exchange rate of dollars for Sf is 1.02, of dollars for British pound is 1.31, and of dollars for yen is 0.00953. The following are the foreign currency positions converted to dollars: Currency Swiss franc (Sf) British pound (£) Japanese yen (¥) Assets $125,000 $ 50,000 $ 75,000 Liabilities EX Bought. $50,000 $22,001 $30,000 $10,000 $15,000 $12,000 FX Sold $15,000 $20,000 $88,000 a. What is the FI's net exposure in Swiss francs stated in Swiss francs (Sf) and in dollars ($)? b. What is the FI's net exposure in British pounds stated in British pounds (£) and in dollars. ($)? c. What is the FI's net exposure in Japanese yen stated in Japanese yen (*) and in…
Dealer 1 offers the following exchange rates: 1 USD = 1.195 CAD1 USD = 0.637 GBPDealer 2 offers the following exchange rates:1 CAD = 0.836 GBP What is the arbitrage profit on $10,903?
21.6 Forward rate: Explain the relationship between each pair of currencies. Spot Rate Forward Rate a. $1.655 £ $1.6001/£ b. ¥104.45 $ ¥102.33/$ c. C$ 1.1121 $ C$ 1.0940/$
A3
The following exchange rates are available to you. • Bank Quotation Fuji Bank, Tokyo Y120/$ • Credit Suisse First Boston, New York SF 1.60/$ Swiss First Bank, Zurich 83/ SF • Assume that you have an initial USD 10,000,000. What is the profit in USD from Triangular Arbitrage Show all working a. $66,666.67 b. $1,066,666 $533333 C. d. $75000
Sav whether the stated currency has appreciated or depreciated. Ex rate at t=1 Ex rate at t=2 $1.09 Currency Swiss Franc $1.12 USD/Swiss USD/Swiss Franc Franc 125 yen/euro 130 yen/euro Euro 18 peso/CAD 21 peso/CAD Peso 7 RMB/USD 6.5 RMB/USD RMB
00 *00 Dexter Inc. had the following items in its unadjusted and adjusted trial balances at December 31, 20X5: Trial Balances Unadjusted Adjusted $41,700 Accounts Receivable (denominated in Australian dollars) Dollars Receivable from Exchange Broker Foreign Currency Receivable from Exchange Broker Accounts Payable (denominated in South Korean won) Dollars Payable to Exchange Broker Foreign Currency Payable to Exchange Broker 000 009 ov 000 000 08 000 18 009 Additional Information 1. On December 1, 20X5, Dexter sold goods to a company in Australia for A$70,000. Payment in Australian dollars is due on January 30, 20X6. On the transaction date, Dexter entered into a 60-day forward contract to sell 70,000 Australian dollars on January 30, 20X6. The 30-day forward rate on December 31, 20X5, was A$1= $0.57. 2. On October 2, 20X5, Dexter purchased equipment from a South Korean company for KRW400,000, payable on January 30, 20X6. On the transaction date, Dexter entered into a 120-day forward…
Recording Export Transactions Daisy Brands, a U.S. company, sells items abroad. Daisy prices many of these transactions in the currency of the customer. Following are four such transactions made in the last accounting period, plus the direct exchange rates for each date: Country Amount Currency Spot rate at sale Spot rate at collection Argentina . . . . . . . . . . . . . . . . . . . . . . 250,000 Peso $0.056 $0.049 Canada . . . . . . . . . . . . . . . . . . . . . . . . 400,000 Dollar 0.732 0.713 India . . . . . . . . . . . . . . . . . . . . . . . . . . 300,000 Rupee 0.016 0.018 South Africa . . . . . . . . . . . . . . . . . . . . 100,000 Rand 0.074 0.077 Required Prepare the journal entries made by Daisy Brands to record the above sale and collection transactions
96 A bank in London, Ontario has a buying rate of CHF 1 = C$1.3525. If the exchange rate is CHF 1 = C$1.3819, calculate the rate of commission that the bank charges. %3D %
Mozzie Ltd has a functional currency of A$. On 1 April 2023, Mozzie Ltd sells goods to a customer on credit terms for US$80 000. On 1 August 2023, cash is received from the customer to settle the invoice Exchange rates are:1 April 2023 US$1.00 = A$1.3030 June 2023 US$1.00 = A$1.551 August 2023 US$1.00 = A$1.45What is the journal entry at the date of cash receipt on 1 August 2023? a. DR. Cash $124 000CR. Foreign Exchange Gain $8 000CR. Accounts Receivable $116 000 b. DR. Cash $55 172CR. Foreign Exchange Gain $3 559CR. Accounts Receivable $51 612 c. DR. Cash $116 000DR. Foreign Exchange Loss $8 000CR. Accounts Receivable $124 000 d. DR. Cash $116 000CR. Foreign Exchange Gain $20 000CR. Accounts Receivable $104 000
3 The forward rate is 0.8500-0.8650 euros to the 1$ What will a euro 2,000 receipt be converted to at the forward rate? A.$1,730 B.$2,312 C.$2,353 D. $1,700