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Questions 23 through 25 refer to the following scenario: The Western Trading Company of the U.S. purchases grains in bulk from around the world, packages
Questions 23 through 25 refer to the following scenario: The Western Trading Company of the U.S. purchases grains in bulk from around the world, packages them into consumer-size quantities, and sells them through sales affiliates in Hong Kong, the United Kingdom and Singapore. For a recent month, the following payments matrix of interaffiliate cash flows, stated in thousands of U.S. Dollars, was forecast. Western Trading Comnanu Daumante natriv Innn! 23. Without any netting, how many total interaffiliate cash flows will there be amongst the four entities? (3 points) A. 12 B. 10 C. 6 D. Not enough information to determine 24. Using bilateral netting, what is the net cash flow (\$000) between the U.S. and Hong Kong entities? (3 points) A. U.S. pays Hong Kong 30 B. Hong Kong pays U.S. 30 C. U.S. pays Hong Kong 10 D. Hong Kong pays U.S. 10 25. Using multilateral netting, what is the net cash flow ($000) between the U.K. and Singapore entities? (3 points) A. U.K. pays Singapore 20 B. Singapore pays U.K. 20 C. U.K. pays Singapore 25 D. There is no cash flow between the U.K. and Singapore entities
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