You are a manufacturer of auto parts locate in Fort Lauderdale, Florida, USA. You have entered into an international sales contract to sell a shipment of parts to a purchaser in São Paulo, Brazil. You have extended credit to the importer using a D/A documentary collection. Terms:Delivery:CIF Santos, Brazil (INCOTERMS 2010)Time of Payment:Sixty days from the date documents are stamped “Shipped on board”Draft Amount:$2,175,000.00Remitting Bank:Bank of America - Fort Lauderdale, Florida, USACollecting Bank:Banco do Brazil - São Paulo, Brazil What could you do to get paid sooner than sixty days?

Documentary collection is a type of trade finance whereby an exporter receives payment for its goods…

Answered: You are a manufacturer of auto parts…

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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You are a manufacturer of auto parts locate in Fort Lauderdale, Florida, USA. You have entered into an international sales contract to sell a shipment of parts to a purchaser in São Paulo, Brazil. You have extended credit to the importer using a D/A documentary collection.

Terms:

Delivery:	CIF Santos, Brazil (INCOTERMS 2010)
Time of Payment:	Sixty days from the date documents are stamped “Shipped on board”
Draft Amount:	$2,175,000.00
Remitting Bank:	Bank of America - Fort Lauderdale, Florida, USA
Collecting Bank:	Banco do Brazil - São Paulo, Brazil

What could you do to get paid sooner than sixty days?

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