Mini-case 1 (15 pts) Element of competency: To ensure the security of payment methods 01HS.4 Performance criteria Weight 4.2Appropriate protection of payment from thefluctuations of exchange rates /15 A Quebec-based company works in the import/export of pharmaceuticals. For several months, it has to respond to interesting orders, which come to it from a new customer in Africa. It, therefore, asks its European supplier to ship sufficient quantities of products. As transactions are made in Euros, the company often loses money with each conversion of payments received and each foreign exchange acquisition with its bank. To remedy this, it decided to explore the possibility of exercising currency exposure setting for the year, according to the following data. Here is an accounts table for 3 of its transactions. Accounts May June July Accounts receivable Eur 115 000 Eur 10 000 Eur 100 000 Accounts payable Eur 5 000 Eur 500 000 Eur 10 000 Cost of conversion = 1% a) Calculate costs in case of payment without netting. (5 pts) b) Calculate costs in case of payment netting. (5 pts) c) Conclude about the advantage/disadvantage netting secures to the company. (5 pts)