Answer:
Graylon will receive $220,000 for the euros
Explanation:
The computation of the Graylon received amount is shown below:
= Payment received × 3-month forward rate
= €200,000 × $1.10
= $220,000
Since the Graylon received the payment in three months so the rate which applies will also of 3 months. That's why we use the 3-month forward rate.
Ignore all other rates which are given in the question
Answer:
Cash coversion cycle is 93.93 days
Explanation:
We have average:
+ Account receivable = $16,500; Inventory = $12,000; Account Payable = $6,100
Calculation of related conversion cycles:
Days inventory outstanding = Average inventory/COGS x 365 = (12,000/53,000) x 365 = 82.64 days
Days sales outstanding = Average receivable / Net sales x 365 = 16,500/113,000 x 365 = 53.30 days
Days payable outstanding = Average payable / COGS x 365 = 6,100/53,000 x 365 = 42.01 days
=> Cash conversion cycle = Days inventory outstanding + Days sales outstanding - Days payable outstanding = 82.64 + 53.30 - 42.01 = 93.93 days
Scarcity refers to the gap between limited resources and theoretically limitless wants. Scarcity affects producers because they have to make a choice on how to best use their limited resources. On the other hand, it affects consumers because they have to make a choice on what services or goods to choose.
Global trade is trade that happens across international borders. Rather than one country buying and selling things, goods and services are traded between countries across the globe.