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 HongKong and the Unites States. For a recent month, the following payments matrix of inter-affiliatecash flows, stated in Singapore dollars, was forecasted.ABC Trading Company Payments Matrix (S$000)Receipts by:SingaporeHong KongU.S.S$170,000S$152,000S$405,000Disbursements by:S$322,000Singapore1622Hong Kong8050Calculate, in Singapore dollars, the amount that the inter-affiliate foreign exchange transactionwill be reduced by with multilateral netting.U.S.11044

Amount forecasted is 16+22+80+50+110+44 = S$322,000With multilateral netting it will be reduced to…

Answered: BC Trading Company of Singapore…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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During July 2016, Petron Corporation had the following transactions with foreign businesses: Date Nature of transaction Exchange Rate Vendor A: Imported merchandise costing 100,000 rupees from Pakistan wholesale 7/1/16 Rupee .82 7/10/16 Paid 40% of amount owed .83 7/31/16 Paid remaining amount owed .78 Customer A: 7/15/08 Sold merchandise for 50,000 pound to Syrian .95 wholesaler 7/20/08 Received 20% payment .90 7/30/08 Received remaining amount owed .91 What is the foreign exchange gain or loss on July 30, 2016 transaction arising from the Syrian wholesaler?
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