The World Bank forecasts growth of world trade to be 7.00 %, up from 20.10% in 2014. This change has caused Galapagos IslandsResort to analyze its current financial situation, beginning with reconciling its accounts. Galapagos Islands Resort received its bankstatement showing a balance of $9,093.20. Its checkbook balance is $15,137.00. Deposits in transit are $4,267.00 and $6,523.00.There is a service charge of $49.00 and interest earned of $7.20. Notes collected total $1,615.00. Outstanding checks are No. 1021 for$2,212.00 and No. 1022 for $961.00. All numbers are in U.S. dollars.Prepare Galapagos Islands Resort bank reconciliation. (Input all amounts as positive values. Round your answers to 2 decimalplaces.)Galapagos Islands Resort checkbook balanceAdd:(Click to select)(Click to select)Deduct:(Click to select)Reconciled balance:$$Bank balanceAdd:(Click to select)Deduct:(Click to select)Reconciled balance.#

Bank reconciliation is the statement which is prepared to reconcile the differences between the…

Answered: The World Bank forecasts growth of…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The treasurer of a major U.S. firm has $22 million to invest for three months. The interest rate in the United States is .22 percent per month. The interest rate in Great Britain is .27 percent per month. The spot exchange rate is £.622, and the three-month forward rate is £.624. Ignore transaction costs. What would be the value of the investment in three months if the money is invested in the U.S. or if it is invested in Great Britain? (Do not round intermediate calculations and enter your answers in dollars, not in millions of dollars, rounded to 2 decimal places, e.g., 1,234,567.89.) U.S. Great Britain
The treasurer of a major U.S. firm has $38 million to invest for three months. The interest rate in the United States is .55 percent per month. The interest rate in Great Britain is .59 percent per month. The spot exchange rate is £.76, and the three-month forward rate is £77. Ignore transaction costs. a. If the treasurer invested the company's funds in the U.S., how much would the investment be worth after three months? Note: Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to 2 decimal places, e.g., 1,234,567.89. b. If the treasurer invested the company's funds in Great Britain, how much would the investment be worth after three months in U.S. dollars? Note: Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to 2 decimal places, e.g., 1,234,567.89. a. U.S. investment b. Great Britain investment
Bank of Maldives expects that Maldives Rufiyaa (MVR) will appreciate against Bangladeshi Taka (BDT) from its spot rate of 5.50 to 5.70 in 45 days. The following annual interbank lending and borrowing rates exist: Country Lending Rate Borrowing Rate Maldives 10.70% 11.50% Bangladesh 5.50% 6.50% Assume Bank of Maldives has a borrowing capacity of either 1 million MVR or 5 million BDT in the interbank market, depending on which currency it wants to borrow. How could Bank of Maldives attempt to capitalize on its expectations without using deposited funds? Estimate the profits that could be generated from this strategy. (Show all necessary calculations and the steps in this speculation strategy).
A bank in London, Ontario charges 2.50% commission to buy and sell currencies. Assume that the current exchange rate is US$1 = C$1.3599. a. How many Canadian dollars will you receive from the bank if you sell US$1,340? Round to the nearest cent b. How much commission will you pay the bank for this transaction? Round to the nearest cent
Please answer part c questions. Part a and b has been answered.
Suppose that Cleveland Co. engages in international business, with transactions denominated in four different foreign currencies: the euro, the Canadian dollar, the Australian dollar, and the Mexican peso. The company wishes to measure its cash flows in a single currency, the dollar, over the next quarter. The following table shows the total cash inflows and outflows for each currency, along with the expected exchange rate for that currency. For each row in the table, enter the net inflow or outflow in that currency for the MNC. Then, enter the dollar value of that inflow or outflow in the last column of the table. Total Inflow (Millions) 30 euros Note: Remember to enter a negative sign if a value is negative. Currency Euro Net Inflow or Outflow (Millions) Total Outflow Expected Exchange (Millions) Rate Net Inflow or Outflow, In Dollars (Millions) 15 euros euros $1.20 Canadian Dollar $C30 $C20 C$ $0.90 +A Australian Dollar $A10 $A20 A$ $0.50 Mexican peso 20 pesos 30 pesos peso $0.10 +A…
Suppose that you are the Chief Financial Officer of a corporation based in Germany (EUR is thehome currency), having operations globally in all the continents.In the performance of your estimations and calculations you have to analyze the exposures in theforeign currencies. In the appendix there is a table with downloaded information from theEuropean Central Bank (ECB)’s website, the exchange rates of each day of September 2020.Required:i. Present that information in a table for 5 currencies (freely decide whichcurrencies).ii. Discuss the fluctuations and how the exchange rates have changed from the firstto the last day of the period under investigation.iii. Discuss how the following activities of your company are expected to beinfluenced by the expected EUR appreciation for the last quarter of 2020.Explain your answers.i. Domestic sales;ii. Foreign sales denominated in domestic currency;iii. Foreign sales denominated in foreign currency;iv. Importing goods for domestic sales…
Finance The US and Australia operate floating exchange regimes, and they trade with each other. Early this month, the RBA increased the cash rate and, as a result, the AUD is appreciating. Explain in detail why the AUD is appreciating in reaction to higher cash rate. Your explanation must emphasise the actions of US residents and Australian residents in relation financial assets.
A bank in Mississauga has a buying rate of ¥1 = C$0.01205. If the exchange rate is ¥1 = C$0.01255, calculate the rate of commission that the bank charges to buy currencies. % Round to two decimal places

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