All Fresh Seafood is a wholesale fish company based on the east coast of the U.S. Catalina Offshore Products is a wholesale fish company based on the west coast of the U.S. Table #9.2.5 contains prices from both companies for specific fish types ("Seafood online," 2013) ("Buy sushi grade," 2013). Data is in following table:

Do the data provide enough evidence to show that a west coast fish wholesaler is more expensive than an east coast wholesaler? Test at the 5% level.

(i) Let ?₁= mean wholesale prices from west coast fishery. Let ?₂ = mean wholesale prices from east coast fishery . Which of the following statements correctly defines the null hypothesis H_O?

A. ?₁ ? ?₂ > 0 (?_d> 0)

B. ?₁ – ?₂= 0 (?_d= 0)

C. ?₁ – ?₂ < 0 (?_d< 0)

D. ?₁ + ?₂= 0

Enter letter corresponding to correct answer

(ii) Let ?₁= mean wholesale prices from west coast fishery. Let ?₂ = mean wholesale prices from east coast fishery . Which of the following statements correctly defines the alternate hypothesis H_A?

A. ?₁ ? ?₂ > 0 (?_d> 0)

B. ?₁ – ?₂= 0 (?_d= 0)

C. ?₁ – ?₂ < 0 (?_d< 0)

D. ?₁ + ?₂= 0

Enter letter corresponding to correct answer

(iii) Enter the level of significance ? used for this test:

Enter in decimal form. Examples of correctly entered answers: 0.01    0.02    0.05    0.10

(iv) Determine sample mean of differences x¯div  Determine sample mean of differences  x¯d {"version":"1.1","math":"<math xmlns="http://www.w3.org/1998/Math/MathML"><mstyle mathsize="14px"><mrow><mfenced><mi mathvariant="bold">iv</mi></mfenced><mo mathvariant="bold">&#xA0;</mo><mo mathvariant="bold">&#xA0;</mo><mi mathvariant="bold">Determine</mi><mo mathvariant="bold">&#xA0;</mo><mi mathvariant="bold">sample</mi><mo mathvariant="bold">&#xA0;</mo><mi mathvariant="bold">mean</mi><mo mathvariant="bold">&#xA0;</mo><mi mathvariant="bold">of</mi><mo mathvariant="bold">&#xA0;</mo><mi mathvariant="bold">differences</mi><mo mathvariant="bold">&#xA0;</mo><mo mathvariant="bold">&#xA0;</mo><msub><mover><mi mathvariant="bold">x</mi><mo mathvariant="bold">&#xAF;</mo></mover><mi mathvariant="bold">d</mi></msub></mrow></mstyle></math>"}

Enter in decimal form to nearest ten-thousandth. Examples of correctly entered answers:

0.0001

0.0020

0.3000

11.2485

(v) Determine sample standard deviation of differences s_d

Enter in decimal form to nearest ten-thousandth. Examples of correctly entered answers:

0.0001    0.0020     0.0500      0.3000   0.5115

(vi) Calculate and enter test statistic

Enter value in decimal form rounded to nearest ten-thousandth, with appropriate sign (no spaces). Examples of correctly entered answers:

–2.0104      –0.3070        +1.6000        +11.0019

(vii) Determine degrees of freedom for the sample of differences df_d:

Enter value in integer form. Examples of correctly entered answers:

2    5    9    23    77

(viii) Using tables, calculator, or spreadsheet: Determine and enter p-value corresponding to test statistic.

Enter value in decimal form rounded to nearest ten-thousandth. Examples of correctly entered answers:

0.0001     0.0021     0.0305     0.6004      0.8143    1.0000

(ix) Comparing p-value and ? value, which is the correct decision to make for this hypothesis test?

A. Reject H_o

B. Fail to reject H_o

C. Accept H_o

D. Accept H_A

Enter letter corresponding to correct answer.

(x) Select the statement that most correctly interprets the result of this test:

A. The result is not statistically significant at .05 level of significance. Sufficient evidence exists to support the claim that west coast fish wholesalers are more expensive than east coast wholesalers.

B. The result is not statistically significant at .05 level of significance. There is not enough evidence to support the claim that west coast fish wholesalers are more expensive than east coast wholesalers.

C. The result is statistically significant at .05 level of significance. There is not enough evidence to support the claim that west coast fish wholesalers are more expensive than east coast wholesalers.

D. The result is statistically significant at .05 level of significance. Sufficient evidence exists to support the claim that west coast fish wholesalers are more expensive than east coast wholesalers.

Enter letter corresponding to most correct answer

All Fresh Seafood is a wholesale fish company based on the east coast of the U.S. Catalina Offshore Products is a wholesale fish company based on the west coast of the U.S. The table below contains prices from both companies for specific fish types ("Seafood online," 2013) ("Buy sushi grade," 2013). Do the data provide enough evidence to show that a west coast fish wholesaler is more expensive than an east coast wholesaler? Test at the 5% level.

Table #2: Wholesale Prices of Fish in Dollars

Step 1: State the question

Step 2: Identify the information

1. State the random variables and parameters in words

2. State the null and alternative hypotheses and level of significance

3. Determine the type of test this is, then state and check the assumptions for this type of test

Step 3: Perform calculations

1. Find the sample statistics

2. Find the test statistic

3. Find the p-value

4. State the conclusion (compare p and alpha and decide to reject H_o or fail to reject H_o)

Step 4. Interpret (answer the original question in a complete sentence)

Please copy explanation from a word document

Wolfe computer is a U.S company that manufacture portable personal computer. Many of the components for the computer are purchased abroad. And the finished products is sold in foreign countries as well as in the United States. Among the recent transaction of Wolfe are the following:

OCT.28 : Purchased from Mitsutonka, a Japanese company, 20,000 disk drives. The purchase price was ¥180,000,000, payable in 30 days. Current exchange rate, $0.0105 per yen. (Wolfe uses the perpetual inventory method; debit the Inventory of Raw Materials account.)

NOV. 9: Sold 700 personal computers to the Bank of England for £604,500 due in 30 days. The cost of the computers, to be debited to the Cost of Goods Sold account, was $518,000. Current exchange rate, $1.65 per British pound. (Use one compound journal entry to record the sale and the cost of goods sold. In recording the cost of goods sold, credit Inventory of Finished Goods.)

NOV.27: Issued a check to Inland Bank for $1,836,000 in full payment of account payable to Mitsutonka.

DEC. 2 : Purchased 10,000 gray-scale monitors from German Optical for €1,200,000, payable in 60 days. Current exchange rate, $0.7030 per euro. (Debit Inventory of Raw Materials.)

DEC.9: Collected dollar-equivalent of £604,500 from the Bank of England. Current exchange rate, $1.63 per British pound.

DEC.11: Sold 10,000 personal computers to Computique, a Swiss retail chain, for SFr23,750,000, due in 30 days. Current exchange rate, $0.6000 per Swiss franc. The cost of the computers, to be debited to Cost of Goods Sold and credited to Inventory of Finished Goods, is $7,400,000.

Required:

a. Prepare in general journal form the entries necessary to record the preceding transactions.

b. Prepare the adjusting entries needed at December 31 for the €1,200,000 account payable to German Optical and the SFr23,750,000 account receivable from Computique. Year-end exchange rates, $0.7000 per euro and $0.5980 per Swiss franc. (Use a separate journal entry to adjust each account balance.)

c. Compute the unit sales price of computers in U.S. dollars in either the November 9 or December 11 sales transaction. (The sales price is the same in each transaction.)

d. Compute the exchange rate for the yen, stated in U.S. dollars, on November 27.

e. explain how Wolfe Computer could have hedged its position to reduce the risk of loss from exchange rate fluctuation on (1) its foreign payables and (2) its foreign receivable

Wrangler Company is a U.S. firm conducting a financial plan for the next year. It has no foreign subsidiaries, but more than half of its sales are from exports. Its foreign cash inflows to be received from exporting and cash outflows to be paid for imported supplies over the next year are shown in the following table:

The spot rates as of today are:

(a) Based on the information provided, determine the net transaction exposure of each foreign currency in dollars.

(b) Assume that the Canadian dollar net inflows may range from C$20,000,000 to C$60,000,000 over the next year. Explain the risk of hedging C$50,000,000 in net inflows. How can Wrangler Company avoid such a risk? Is there any tradeoff resulting from your strategy to avoid that risk?

Peerless Corporation (a U.S. company) made a sale to a foreign customer on September 15, for 124,000 crowns. It received payment on October 15. The following exchange rates for 1 crown apply:

Prepare all (4) journal entries for Peerless in connection with this sale, assuming that the company closes its books on September 30 to prepare interim financial statements. (If no entry is required for a transaction/event, select " No journal entry required" in the first account field.)

You are the manager of a U.S. company situated in Los Angeles and manages the import/export division of the company. The company distributes (resells) a variety of consumer products imported to the U.S.A from Europe and also exports goods manufactured in the U.S.A. to Canada.

The first transaction is for the import of good quality wines from France, since a retail liquor trading chain customer in the United States, for who you have been doing imports over the past five years has a very large order this time. The producer in France informed you that the current cost of the wine that you want to import is and €2,500,000. The producer in France will only ship goods in three months’ time due to seasonal differences but payment will have to be conducted six months from now.

The second transaction is for the export of 3d printers manufactured in the U.S.A. The country where it will be exported to is Canada. The payment of CAD 2,500,000 for the export to Canada will be received twelve months from now.

You consider different transaction hedges, namely forwards, options and money market hedges.

You are provided with the following quotes from your bank, which is an international bank with branches in all the countries:

Forward rates:

Bank applies 360 day-count convention to all currencies (for this assignment apply 360 days in all calculations).

Annual borrowing and investment rates for your company:

Bank applies 360 day-count convention to all currencies. Explanation – e.g. 3 month borrowing rate on $ = 2.687%. This is the annual borrowing rate for 3 months. If you only borrow for 3 months the interest rate is actually 2.687%/4 = 0.67175% (always round to 5 decimals when you do calculations). Furthermore, note that these are the rates at which your company borrows and invests. The rates are not borrowing and investment rates from a bank perspective.

Option prices:

Bank applies 360 day-count convention to all currencies. (Students also have to apply 360 days in all calculations). Option premium calculations should include time value calculations based on US $ annual borrowing interest rates for applicable time periods e.g. 3 month $ option premium is subject to 2.687%/4 interest rate.)

1. Compare the forward quotes and money market hedges with each other to determine the best exchange rate hedges for Canada

Table 7: Canada exchange rate hedges compared:

Which hedging technique should be applied? ____________________________________

You are a senior manager in a U.S. automobile company who is considering investing in production facilities in China, Russia, or Germany. These facilities will serve the local market demand. Develop a summary that determines the benefits, costs, and risks associated with doing business in each nation. Which country seems to be the most attractive target for foreign direct investment? Why? The course is International Business and Global Strategy.

A U.S. company, sells items abroad. Daisy prices many of these transactions in the currency of the customer. Following are four such transactions made in the last accounting period, plus the direct exchange rates for each date:

Prepare the journal entries made by Daisy Brands to record the above sale and collection transactions.

On September 3, 2017, Robin Franchises, a U.S. company, sold merchandise to a franchisee in the U.K., at a price of £8,000,000, payable in three months in pounds. To hedge its exposed asset position, on September 3, 2017, Robin entered a forward contract for delivery of £8,000,000 to the broker on December 3, 2017. On December 3, 2017, Robin received payment from the franchisee, and delivered the pounds to the broker to close the forward contract. Robin’s accounting year ends December 31. Exchange rates ($/£) are as follows:

Required

a. Prepare the journal entries Robin Franchises made on September 3, 2017 and December 3, 2017.

b. Calculate the cash gain or loss realized by Robin Franchises by hedging compared with not hedging.

You are a senior manager in a U.S. automobile company who is considering investing in production facilities in China, Russia, or Germany. These facilities will serve the local market demand. Develop a summary that determines the benefits, costs, and risks associated with doing business in each nation. Which country seems to be the most attractive target for foreign direct investment? Why?

The course is DBA 8710 International Business and Global Strategy