Question

In: Finance

A businessman has just completed transactions in Italy and England. He is now holding €350,000 and...

A businessman has just completed transactions in Italy and England. He is now holding €350,000 and £250,000 and wants to convert to U.S. dollars. His currency dealer provides this quotation: £ /$ 0.7550– 10 $/ € 1.1350 – 10 What are his proceeds from conversion?

Solutions

Expert Solution

Given Rates

Pound/ USD = 0.7550 - 07560

$ / Euro = 1.1350 - 1.1360

Selling Euros requires Bid Rate

1 Euro = $ 1.1350

Buying $ Requires Ask rate 1 Pound = USD 0.7560

Conversion Proceeds:

Euro 350000 = 350000 * 1.1350

= USD 397250

Pound 250000 = 250000 / 0.7560

= USD 330687.83

Conversion Prioceeds = $ 397250 + $ 330687.83

= $ 727937.83

jeff jeffy answered 2 years ago
Next > < Previous

Related Solutions

Assume it is now December 31, 2017 and Nicole has just completed her first year of...
Assume it is now December 31, 2017 and Nicole has just completed her first year of operations at Nicole’s Getaway Spa. After looking through her trial balance, she noticed that there are some items that have either not been recorded or are no longer up-to-date. Nicole’s Getaway Spa is renting its space at a cost of $600 per month. On September 1, 2017, Nicole paid eight months’ rent in advance using cash. This prepayment was recorded in the account Prepaid...
Assume it is now December 31, 2017 and Nicole has just completed her first year of...
Assume it is now December 31, 2017 and Nicole has just completed her first year of operations at Nicole’s Getaway Spa. After looking through her trial balance, she noticed that there are some items that have either not been recorded or are no longer up-to-date. 1. Nicole’s Getaway Spa is renting its space at a cost of $600 per month. On September 1, 2017, Nicole paid eight months’ rent in advance using cash. This prepayment was recorded in the account...
Goofy has just offered you the opportunity to buy into one of the miniature golf courses he has just completed at Disney World.
  Goofy has just offered you the opportunity to buy into one of the miniature golf courses he has just completed at Disney World. To lease the course you must make a single, up-front payment of $200,000 cash. The course is expected to generate revenues of $75,000 for the next ten years, at which time your lease expires and the course reverts to Goofy. At the end of the lease, the golfing equipment is yours and can be sold at...
Question 1 Fantastic Fashions has just completed its first quarter of operations. Below are transactions that...
Question 1 Fantastic Fashions has just completed its first quarter of operations. Below are transactions that have not yet been recorded. Prepare the journal entries listed below.       Jan 1    Pre-tax cash sales amounted to $75,000. HST is collected on all sales at a rate of 13%.    Jan 15    Signed a three month note for $12,000 to extend amounts owing on account to Trendy Taste Inc. Interest is 6% annually and due at maturity.    Mar...
Question 1 Fantastic Fashions has just completed its first quarter of operations. Below are transactions that...
Question 1 Fantastic Fashions has just completed its first quarter of operations. Below are transactions that have not yet been recorded. Prepare the journal entries listed below.               Jan 1     Pre-tax cash sales amounted to $75,000. HST is collected on all sales at a rate of 13%.        Jan 15 Signed a three month note for $12,000 to extend amounts owing on account to Trendy Taste Inc. Interest is 6% annually and due at maturity.        Mar 1...
Francis is an experienced businessman working in the hospitality industry for many years. He has recently...
Francis is an experienced businessman working in the hospitality industry for many years. He has recently purchased an old restaurant. The commercial kitchen in the restaurant was in poor condition. Replacing the whole commercial kitchen will cost Francis $23,000. The cost of repairing the kitchen appliances will be $4,900, however some parts may not be available in the market anymore as these appliances are too old and obsolete. Francis decided to replace the commercial kitchen with brand new modern appliances...
Francis is an experienced businessman working in the hospitality industry for many years. He has recently...
Francis is an experienced businessman working in the hospitality industry for many years. He has recently purchased an old restaurant. The commercial kitchen in the restaurant was in poor condition. Replacing the whole commercial kitchen will cost Francis $23,000. The cost of repairing the kitchen appliances will be $4,900, however some parts may not be available in the market anymore as these appliances are too old and obsolete. Francis decided to replace the commercial kitchen with brand new modern appliances...
Mr. Thompson is a businessman. He started a business five years ago and it has increased...
Mr. Thompson is a businessman. He started a business five years ago and it has increased in size gradually for its continuous success. Thompson Inc. is a private company and it uses ASPE for preparing its financial statements. It has completed accounting year on December 31, 2017. At the end of 2017, the financial position statement shows that there is huge amount of surplus cash and Thompson has shown interest in investing a part of the surplus amount to the...
5. Doogie lives for four periods. He has just completed the first period of his life...
5. Doogie lives for four periods. He has just completed the first period of his life (by getting his high school diploma). Doogie is trying to decide on his future career path. He’s very good at opening things up and fixing them, so he has narrowed his options to two possible paths. He will either become an auto mechanic or a brain surgeon. •If Doogie becomes an auto mechanic, he will earn $25,000 as an apprentice in period 2, $50,000...
5. Doogie lives for four periods. He has just completed the first period of his life...
5. Doogie lives for four periods. He has just completed the first period of his life (by getting his high school diploma). Doogie is trying to decide on his future career path. He’s very good at opening things up and fixing them, so he has narrowed his options to two possible paths. He will either become an auto mechanic or a brain surgeon. •If Doogie becomes an auto mechanic, he will earn $25,000 as an apprentice in period 2, $50,000...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT