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NEED HELP ASAP The case is below. Complete a modified version of Mini Case 1 on p. 487 (use these numbers) to compute costs and
NEED HELP ASAP
The case is below.
- Complete a modified version of Mini Case 1 on p. 487 (use these numbers) to compute costs and associated savings from both bilateral and multilateral netting for Eastern Trading Company.
- Use an Excel spreadsheet to prepare a table like that in Exhibit 19.2 for the modified Eastern Trading Company data (add and compute the "Net" column).
- Use Excel, Word, or a drawing to map the raw data for Eastern Trading, as illustrated in Exhibit 19.3 for Teltrex.
- Use Excel, Word, or a drawing to perform and document a bilateral netting for Eastern Trading, as illustrated in Exhibit 19.4 for Teltrex.
- Use Excel, Word, or a drawing to perform and document a multilateral netting for Eastern Trading, as illustrated in Exhibit 19.5 for Teltrex.
Compute the total dollar savings from the multilateral netting for Eastern Trading by taking the original costs, before any netting was performed, and subtracting the new cost after multilateral netting.
Note: The cost per foreign currency exchange was given as 0.005 per S$ (a cost of "0.5 percent"). Thus, the original costs should be S$400,000 times 0.005, or S$2,000.
Total Receipts 220 B Eastern Trading 2 Currency Exchange Netting: Mini Case 1 Modified 2019 3 4 Original Internal Cash Flow - Disbursements 5 Hong 6 Singapore Kong U.K. U.S. 7 Singapore 60 85 75 8 Hong Kong 10 15 30 9 U.K. 20 10 20 10 U.S. 15 50 10 11 Total Disbursements 45 120 110 125 12 13 Costs of Foreign Exchange Transactions 14 per transaction 15 total 55 50 75 400 400 0.005 $ 2,000 16 17 Explanation/example: 18 Singapore will send S$10,000 (Singapore dollars) to Hong Kong. 19 In total, Singapore will send S$45,000 to the other 3 affiliates. 20 In total, Singapore will receive S$220,000 from the other 3 affiliates. 21 ReadyStep by Step Solution
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