• Essence of Skunk Fragrances, Ltd., sells 6,800 units of its perfume collection each year at a price per unit of $398. All sales are on credit with terms of 1/25, net 50. The discount is taken by 40 percent of the customers.

What is the amount of the company's accounts receivable?(Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)

In reaction to sales by its main competitor, Sewage Spray, Essence of Skunk is considering a change in its credit policy to terms of 3/25, net 50 to preserve its market share. Will this change in policy increase or decreaseaccounts receivable?

• Assume purchasing power parity holds and a Big Mac sells for $3.48 in the United States and krna 127.30 in Iceland.What is the krna/$ exchange rate?(Do not include the krna sign. Do not round intermediate calculations and round your answer to 4 decimal places, e.g., 32.1616.)

• Suppose the spot and three-month forward rates for the yen are 101.23 and 102.16, respectively.

a.Is the yen expected to get stronger or weaker?

b.What would you estimate is the difference between the inflation rates of the United States and Japan?(A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16)