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Using the following cost and revenue information for Prestige Worldwide (PWW), determine how the costs, revenue, and cash flow items would be affected by the

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Using the following cost and revenue information for Prestige Worldwide (PWW), determine how the costs, revenue, and cash flow items would be affected by the possible exchange rate scenarios for the pound: (1) = $1.20, (2) = $1.25, and (3) = $1.30. Would Prestige Worldwide be favorably or unfavorably affected by a weakening pound? Why? Explain. Assume that U.S. sales will be unaffected by the exchange rate. Also, assume that earnings will be remitted to the U.S. parent at the end of the period. Lastly, ignore possible tax effects. Pounds () 325 150 Sales Cost of Materials Operating Expenses Interest Expense Cash Flow USD (S) 400 240 100 200 ??? ??? Please simply complete the table below (populate the table with the USD cash flows for each account under each scenario) $1.20 $1.25 $1.30 Direct Exchange Rate Sales US Sales UK Sales (in USD) Total Sales Cost of Materials US Cost of Materials UK Cost of Materials in USD Total Cost of Materials Operating Expenses US Operating Expense UK Operating Expense (in USD Total Operating Expense Interest Expenses US Interest Expense UK Interest Expense (in USD) Total Interest Expense Total Cash Flow (in USD)

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