Finance Assignment
SCENARIO: John Doe’s company, Big Money Inc, has consulting contracts with companies based in numerous foreign countries. These companies prefer to both be billed and to pay in their home currency, so Mr. Doe monitors exchange rates closely. His customers wire payment in their currency to his concentration account and his bank converts the funds into U.S. Dollars (USD) prior to crediting the account. Below are the invoices that are due his company in the next 10 days:
Toyota (Japan) – 10 million Yen (JPY)
Fiat (Italy) – 50,000 Euro (EUR)
Zenn (Canada) – 25,000 Canadian Dollar (CAD)
Holden (Australia) – 35,000 Australian Dollar (AUD)
Mastretta (Mexico) – 2 million Peso (MXN)
Kia (South Korea) – 100 million Won (KRW)
Volvo (Sweden) – 300,000 Krona (SEK)
Rinspeed (Switzerland) – 80,000 Franc (CHF)
BAIC (Hong Kong) – 400,000 Hong Kong Dollar (HKD)
PSO (Poland) – 250,000 Zloty (PLN)
ASSIGNMENT: 1) Utilizing the foreign currency exchange rates (in U.S. Dollars) below, calculate the U.S. Dollar equivalent for all 10 full invoice amounts, which Mr. Doe expects to receive into his business account (assuming the rates below will be the same when payment is received). 2) Show the grand total of the receipts in U.S. Dollars.
Present your work in Excel and show all formulas used. There are numerous exchange rate calculators online you can use to verify your answers.
AUD-USD 0.6950
CAD-USD 0.7278
CHF-USD 0.9511
EUR-USD 1.0526
HKD-USD 0.1208
JPY-USD 0.00849
KRW-USD 0.0008263
MXN-USD 0.0506
PLN-USD 0.2527
SEK-USD 0.1061
Preferred language style US English
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