Answer:
Cash outflow of $579,500
Explanation:
Net cash flow is the sum of all cash inflow and outflows of the company. In this question the company has cash outflow from Spain and inflow from Germany.
As per given data
Cash flow from Spain subsidiary = €5,000,000 outflow
Cash flow from German subsidiary = €4,500,000 inflow
Net cash flow to parent company = - €5,000,000 + €4,500,000
Net cash flow to parent company = - €500,000
The currency is converted using the exchange rate of two currencies which is $1.159 per euro.
Net cash Flow in U.S. dollars = - €500,000 x $1.159 per euro
Net cash Flow in U.S. dollars = - $579,500
