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The exchange rate between U.S. dollars and Mexican pesos is SO(MXN/USD) = MXN 16/USD. Translate the following cash flows into the U.S. parent's functional currency
The exchange rate between U.S. dollars and Mexican pesos is SO(MXN/USD) = MXN 16/USD. Translate the following cash flows into the U.S. parent's functional currency (USD) and then net the cash flows. After multinational netting, what is the net cash flow to-or-from the U.S. parent? (Note: In the answers below, a positive sign indicates a cash inflow to the parent and a negative sign indicates a cash outflow from the parent.) USD 500 U.S. Canada USD 300 USD 600 USD 4004 USD MXN 400 8000 X USD JUSD 200 900 MXN 3500 USD 400 Mexico USD 400 Panama MXN 3200 -$400 -$300 -$200 -$100 $0 +$100 +$200 +$300 O +$400
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