Question
Energy Power is an Australian mining company which mine Coal and export most of its production to several countries (detail below). During 2019 the total
Energy Power is an Australian mining company which mine Coal and export most of its production to several countries (detail below). During 2019 the total revenue for the company was 110 million Australian dollars (AUD). However, after Covid-19 hit the world economy the company experience a decline in demand from several countries during 2020. Bilateral exchange rates with export-countries also have fluctuated significantly as shown below:
Energy Power Cashflow 2019 and 2020
Source
Share of total production when converted to Australian dollars ( 2019)
Export to China 52%
Average exchange rates for the year 2019- 4.80
Average exchange rates for the year 2020-4.76
Export to Japan 29%
Average exchange rates for the year 2019 -75.82
Average exchange rates for the year 2020-73.83
Export to India 15%
Average exchange rates for the year 2019 - 48.95
Average exchange rates for the year 2020-51.15
Sell to the Australian market 4%
Total revenue
100% (110 million AUD)
-
-
1) Given the information provided in the table above.
Assuming that the share of exports and domestic consumption for Energy Power remains unchanged from 2019 to 2020. Estimate: the cash flow in terms of Australian dollars for Energy Power using 2020 exchange rates.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started