(b) Kenduri Co is considering whether or not to manage the foreign exchangeexposure by using multilateral netting from the UK, with the Sterling Pound (£) asthe base currency. Multilateral netting is undertaken in order to show the cash flowtransaction. The following cash flows between Kenduri with three subsidiaries;Lakama from United States, Jaia from Canada and Gochiso in Japan. Below arethe details of cash flow transactions:Owed byKenduriOwed toLakamaJaiaAmountUS$ 4.5 millionCAD 1.1 millionKenduriKenduriGochisoJPY 180 millionGochisoJaiaCAD 3.2 millionGochisoLakamaUS$ 1.4 millionGochisoKenduriGBP 25 millionJaiaLakamaUS$ 1.5 millionJaiaKenduriGBP 40 millionJaiaGochisoJPY 115 millionLakamaGochisoJPY 320 millionLakamaGBP 2.1 millionKenduriJaiaLakamaCAD 2.5 millionCalculate the impact of undertaking multilateral netting by Kenduri Co and itsthree subsidiary companies for the cash flows due in three months if theexchange rate is $1.5938/£, CAD1.5690/£ and JPY131.91/£

Subsidiary Company- A subsidiary company is one that is controlled or owned by another company. The…

(b) Kenduri Co is considering whether or not to manage the foreign exchange exposure by using multilateral netting from the UK, with the Sterling Pound (£) as the base currency. Multilateral netting is undertaken in order to show the cash flow transaction. The following cash flows between Kenduri with three subsidiaries; Lakama from United States, Jaia from Canada and Gochiso in Japan. Below are the details of cash flow transactions: Qwed by Owed to Amount

(b) Kenduri Co is considering whether or not to manage the foreign exchange exposure by using multilateral netting from the UK, with the Sterling Pound (£) as the base currency. Multilateral netting is undertaken in order to show the cash flow transaction. The following cash flows between Kenduri with three subsidiaries; Lakama from United States, Jaia from Canada and Gochiso in Japan. Below are the details of cash flow transactions: Qwed by Owed to Amount

Century 21 Accounting Multicolumn Journal

11th Edition

ISBN:9781337679503

Author:Gilbertson

Publisher:Gilbertson

Chapter24: Recording International And Internet Sales

Section: Chapter Questions

Problem 1ANFS

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