XYZ Corporation exchanges Japanese yen (JPY) into US dollars. They exchange 50,000,000 JPY into USD. The exchange rate between the Japanese yen (JPY) and the US dollar (USD) is 1 JPY = 0.0082 USD. However, XYZ Corporation incurs a currency exchange fee of 1.5% on the transaction. How much will XYZ Corporation receive in US dollars after deducting the currency exchange fee?
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- XYZ Corporation imports goods from China with a total invoice value of $10,000,000. The exchange rate between the US dollar (USD) and the Chinese yuan (CNY) is 1 USD = 6.95 CNY. However, due to a temporary market fluctuation, XYZ Corporation negotiates a discount of 2% on the invoice value. What is the total amount in Chinese yuan that XYZ Corporation needs to pay after applying the discount?On March 1, Laton Products (a U.S. firm) purchased manu-facturing inputs from a Mexican supplier for 20,000 pesos, payable on June 1. The exchange rate for pesos on March 1was $0.17. If the exchange rate increases to $0.19 on June 1,what amount of gain or loss would be reported by Latonrelated to the currency exchange?a. $400 gain.b. $200 loss.c. $400 loss.d. $200 gain.Peerless Corporation (a U.S. company) made a sale to a foreign customer on December 15, 20X1 for 125,000 crowns. It received payment on January 15, 20X2. The following exchange rates for 1 crown apply: December 15 $ 0.61 December 31 0.65 January 15 0.60 How does the fluctuation in exchange rates affect Peerless’s 20X1 income statement?
- Blowfast Corporation, a U.S. exporter, sold wind turbines to a Mexican customer at a price of 5,000,000 U.S. dollars. In order to close the sale, however, Blowfast needed to agree to make its invoice payable in Mexican pesos, thus agreeing to take on the exchange rate risk for the transaction. The USDMXN exchange rate on the day of the sale was 20.0000, making the cost to the customer (per the invoice) 100,000,000 pesos. The terms of payment were: net, 6 months. If the value of the peso fell against the U.S. dollar such that one dollar would buy 22.0000 pesos by the date the invoice needed to be paid, what dollar amount would Blowfast receive assuming that it exchanged the recently received pesos for U.S. dollars in a foreign exchange transaction on the payment date? How much money did Blowfast gain or lose because of the change in the exchange rate?Lost Pigeon Aviation, a U.S. company, produces and exports industrial machinery overseas. It recently made a sale to a Japanese manufacturing firm for ¥694 million, but the Japanese firm has 60 days before it must make the payment to Lost Pigeon Aviation The spot exchange rate is ¥132.78 per dollar, and the 60-day forward rate is ¥134.72 per dollar. Is the yen selling at a premium or at a discount in the forward market relative to the U.S. dollar? The yen is trading at a discount in the forward market. In the forward market, the yen is trading at a premium.today you notice the following exchange rate quotations. $1 is equal to 4.08 Argentine pesos. 1 Argentine peso = 0.44 Canadian dollars. You need to purchase 3251 Canadian dollars with U.S dollars. How many U.S dollars will you need for your purchase? (Do not round intermediate calculations and enter your answer rounded to 2 decimal places)
- Dow Chemical receives quotes from a foreign currency trader of USD 0.1642 -0.1657 / PLZ and USD 0.2618-0.2646/DKK. How many DKK will Dow Chemical pay the trader for a purchase of 100 million PLZ? [Note: Show calculations for this cross currency exchange] 63.3 million DKK 62.7 million DKK 161.14 million DKK 158 million DKKSpindler, Inc. (a U.S.-based company), imports surfboards from a supplier in Brazil and sells them in the United States. Purchases are denominated in terms of the Brazilian real (BRL). During 2020, Spindler acquires 320 surfboards at a price of BRL 1,600 per surfboard, for a total of BRL 512,000.00. Spindler will pay for the surfboards when it sells them. Relevant exchange rates are as follows: Date U.S. Dollar perBrazilian Real (BRL) September 1, 2020 $ 0.220 December 1, 2020 0.210 December 31, 2020 0.230 March 1, 2021 0.215 Assume that Spindler acquired the surfboards on September 1, 2020, and made payment on December 1, 2020. What is the effect of the exchange rate fluctuations on reported income in 2020? Assume that Spindler acquired the surfboards on December 1, 2020, and made payment on March 1, 2021. What is the effect of the exchange rate fluctuations on reported income in 2020 and 2021? Assume that Spindler acquired the surfboards on…Ganado Corporation recently received a payment for one of the consignments it exported to Europe, It has 2,000 Euros (€ or EUR) with it. Wanting to exchange all of these for Russian rubles(R or RUB) since it will be importing a new machine from a merchant in Russia, it obtains the following quotes: Spot rate USD=1.00 EUR (or $/€) Spot rate RUB=1.00 USD (or R/S) a. What is the Russian ruble to euro crossrate? b. How many Russian rubles will you obtain for your Euros? 1.1280 62.40
- Spindler, Incorporated (a U.S.-based company), imports surfboards from a supplier in Brazil and sells them in the United States. Purchases are denominated in terms of the Brazilian real (BRL). During 2023, Spindler acquires 280 surfboards at a price of BRL 1,600 per surfboard, for a total of BRL 448,000. Spindler will pay for the surfboards when it sells them. Relevant exchange rates are as follows: Date September 1, 2023 December 1, 2023 December 31, 2023 March 1, 2024 U.S. Dollar per Brazilian Real (BRL) $ 0.210 0.200 0.220 0.205 Required: a. Assume that Spindler acquired the surfboards on September 1, 2023, and made payment on December 1, 2023. What is the effect of the exchange rate fluctuations on reported income in 2023? b. Assume that Spindler acquired the surfboards on December 1, 2023, and made payment on March 1, 2024. What is the effect of the exchange rate fluctuations on reported income in 2023 and 2024? c. Assume that Spindler acquired the surfboards on September 1, 2023,…Spindler, Inc. (a U.S-based company), imports surfboards from a supplier in Brazil and sells them in the United States. Purchases are denominated in terms of the Brazilian real (BRL). During 2020, Spindler acquires 410 surfboards at a price of BRL 1,600 per surfboard, for a total of BRL 656,000.00. Spindler will pay for the surfboards when it sells them. Relevant exchange rates are as follows: Date September 1, 2020 December 1, 2020 December 31, 2020 March 1, 2021 a. b. U.S. Dollar a. Assume that Spindler acquired the surfboards on September 1, 2020, and made payment on December 1, 2020. What is the effect of the exchange rate fluctuations on reported income in 2020? b. Assume that Spindler acquired the surfboards on December 1, 2020, and made payment on March 1, 2021. What is the effect of the exchange rate fluctuations on reported income in 2020 and 2021? C per Brazilian c. Assume that Spindler acquired the surfboards on September 1, 2020, and made payment on March 1, 2021. What is…In the spot market, 17.6 Mexican pesos can be exchangedfor 1 U.S. dollar. A compact disc costs $15 in the United States. If purchasing power parity(PPP) holds, what should be the price of the same disc in Mexico?
