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 HONG KONG AND THE UNITED STATES. FOR A RECENT MONTH, THE FOLLOWING PAYMENTS MATRIX OF INTER-AFFILIATE CASH FLOWS, STATED IN SINGAPORE DOLLARS, WAS FORECASTED:

DIBURSEMENTS BY		SINGAPORE	HONG KONG	USA
RECEIPTS BY
	SINGAPORE	X	80	110
	HONG KONG	16	X	44
	USA	22	50	X

1. CALCULATE THE NUMBER OF TRANSACTIONS WITHOUT MULTILATERAL CASH NETTING. 2. TOTAL VALUE OF DISBURSEMENTS WITHOUT MULTILATERAL CASH NETTING. 3. CALCULATE THE NUMBER OF TRANSACTIONS WITH MULTILATERAL CASH NETTING. 4. TOTAL VALUE OF DISBURSEMENTS WITH MULTILATERAL CASH NETTING. 5. ASSUMING TRANSACTION COSTS ARE S$0.05 OF THE VALUE OF TRANSACTIONS, HOW MUCH WAS SAVED BY ABC COMPANY BY PRACTICING MULTILATERAL CASH NETTING?

HINT: CREATE A TRIANGULAR DIAGRAM WITH TRANSACTION ARROWS AND FOLLOW THE LOGIC OF CASH NETTING