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Appendix: ECB's website the exchange rates of each day of September 2020. Date GBP 30-09-20 0.91 29-09-20 0.91 28-09-20 0.91 25-09-20 0.91 24-09-20 0.91 23-09-20 0.92 22-09-20 0.92 21-09-20 0.92 18-09-20 0.91 17-09-20 0.92 16-09-20 0.91 15-09-20 0.92 14-09-20 0.92 11-09-20 0.92 10-09-20 0.92 09-09-20 0.91 08-09-20 0.90 07-09-20 0.90 04-09-20 0.89 03-09-20 0.89 02-09-20 0.89 01-09-20 0.89 36.78 HUF PLN RON ISK 365.53 4.55 4.87 162.20 365.70 4.54 4.87 162.00 364.12 4.55 4.87 162.40 363.16 4.56 4.88 161.80 364.45 4.53 4.88 161.80 365.01 4.50 4.87 161.40 362.05 4.49 4.86 162.00 363.08 4.48 4.86 161.60 RUB AUD BRL NZD PHP SGD THB 91.78 1.64 6.63 1.78 56.77 1.60 37.08 92.16 1.64 6.60 1.77 56.70 1.60 36.99 91.82 1.65 6.46 1.78 56.61 1.60 36.97 90.41 1.65 6.46 1.78 56.43 1.60 89.87 1.65 6.49 1.78 56.55 1.60 89.79 1.64 6.45 1.78 56.78 1.60 89.15 1.63 6.37 1.76 56.90 1.60 89.98 1.62 6.43 1.76 57.14 1.60 1.75 57.31 1.75 57.17 36.82 19.87 36.84 19.96 36.84 19.58 36.82 19.74 36.89 19.15 360.78 4.46 4.86 160.80 89.14 1.62 6.22 361.16 4.46 4.86 162.20 1.61 1.60 88.61 1.62 36.80 19.27 6.21 6.22 1.76 57.40 358.54 4.45 4.86 160.60 1.61 36.91 19.37 1.62 37.08 19.57 37.17 19.79 37.14 19.85 357.68 4.45 4.86 160.60 357.65 4.45 4.86 160.00 357.13 4.45 4.86 161.80 357.85 4.45 357.70 4.45 1.62 37.05 19.86 4.86 163.70 4.86 165.80 4.86 165.30 1.77 57.28 1.61 36.93 19.70 88.80 1.62 89.10 1.62 6.23 1.77 57.51 89.59 1.63 6.31 1.77 57.59 1.62 88.73 1.62 6.26 1.77 57.55 1.62 88.89 1.63 6.29 1.77 57.59 89.36 1.63 6.28 90.02 1.63 6.34 89.82 1.62 6.27 88.97 1.63 6.28 88.98 1.62 6.34 1.76 57.39 1.61 88.07 1.62 6.42 1.75 57.67 1.62 4.84 164.50 88.15 1.62 6.51 1.77 58.17 1.77 57.33 1.61 37.08 20.00 361.37 4.45 359.92 4.45 4.86 164.90 1.76 57.55 1.62 37.09 19.77 1.76 57.53 1.62 37.17 19.63 37.14 19.81 359.60 4.45 4.85 164.70 358.05 4.43 4.85 164.50 358.77 4.42 4.84 164.50 37.10 19.92 354.02 4.39 1.63 37.25 19.95 AN ZAR 19.71 19.87 19.89 19.90

Appendix: ECB's website the exchange rates of each day of September 2020. Date GBP 30-09-20 0.91 29-09-20 0.91 28-09-20 0.91 25-09-20 0.91 24-09-20 0.91 23-09-20 0.92 22-09-20 0.92 21-09-20 0.92 18-09-20 0.91 17-09-20 0.92 16-09-20 0.91 15-09-20 0.92 14-09-20 0.92 11-09-20 0.92 10-09-20 0.92 09-09-20 0.91 08-09-20 0.90 07-09-20 0.90 04-09-20 0.89 03-09-20 0.89 02-09-20 0.89 01-09-20 0.89 36.78 HUF PLN RON ISK 365.53 4.55 4.87 162.20 365.70 4.54 4.87 162.00 364.12 4.55 4.87 162.40 363.16 4.56 4.88 161.80 364.45 4.53 4.88 161.80 365.01 4.50 4.87 161.40 362.05 4.49 4.86 162.00 363.08 4.48 4.86 161.60 RUB AUD BRL NZD PHP SGD THB 91.78 1.64 6.63 1.78 56.77 1.60 37.08 92.16 1.64 6.60 1.77 56.70 1.60 36.99 91.82 1.65 6.46 1.78 56.61 1.60 36.97 90.41 1.65 6.46 1.78 56.43 1.60 89.87 1.65 6.49 1.78 56.55 1.60 89.79 1.64 6.45 1.78 56.78 1.60 89.15 1.63 6.37 1.76 56.90 1.60 89.98 1.62 6.43 1.76 57.14 1.60 1.75 57.31 1.75 57.17 36.82 19.87 36.84 19.96 36.84 19.58 36.82 19.74 36.89 19.15 360.78 4.46 4.86 160.80 89.14 1.62 6.22 361.16 4.46 4.86 162.20 1.61 1.60 88.61 1.62 36.80 19.27 6.21 6.22 1.76 57.40 358.54 4.45 4.86 160.60 1.61 36.91 19.37 1.62 37.08 19.57 37.17 19.79 37.14 19.85 357.68 4.45 4.86 160.60 357.65 4.45 4.86 160.00 357.13 4.45 4.86 161.80 357.85 4.45 357.70 4.45 1.62 37.05 19.86 4.86 163.70 4.86 165.80 4.86 165.30 1.77 57.28 1.61 36.93 19.70 88.80 1.62 89.10 1.62 6.23 1.77 57.51 89.59 1.63 6.31 1.77 57.59 1.62 88.73 1.62 6.26 1.77 57.55 1.62 88.89 1.63 6.29 1.77 57.59 89.36 1.63 6.28 90.02 1.63 6.34 89.82 1.62 6.27 88.97 1.63 6.28 88.98 1.62 6.34 1.76 57.39 1.61 88.07 1.62 6.42 1.75 57.67 1.62 4.84 164.50 88.15 1.62 6.51 1.77 58.17 1.77 57.33 1.61 37.08 20.00 361.37 4.45 359.92 4.45 4.86 164.90 1.76 57.55 1.62 37.09 19.77 1.76 57.53 1.62 37.17 19.63 37.14 19.81 359.60 4.45 4.85 164.70 358.05 4.43 4.85 164.50 358.77 4.42 4.84 164.50 37.10 19.92 354.02 4.39 1.63 37.25 19.95 AN ZAR 19.71 19.87 19.89 19.90

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question

Suppose that you are the Chief Financial Officer of a corporation based in Germany (EUR is the
home currency), having operations globally in all the continents.

In the performance of your estimations and calculations you have to analyze the exposures in the
foreign currencies. In the appendix there is a table with downloaded information from the
European Central Bank (ECB)’s website, the exchange rates of each day of September 2020.

Required:
i. Present that information in a table for 5 currencies (freely decide which
currencies).
ii. Discuss the fluctuations and how the exchange rates have changed from the first
to the last day of the period under investigation.
iii. Discuss how the following activities of your company are expected to be
influenced by the expected EUR appreciation for the last quarter of 2020.

Explain your answers.
i. Domestic sales;
ii. Foreign sales denominated in domestic currency;
iii. Foreign sales denominated in foreign currency;
iv. Importing goods for domestic sales denominated in domestic currency;
v. Importing goods for domestic sales denominated in foreign currency;
vi. Importing production materials / input denominated in domestic currency;
vii. Importing production materials / input denominated in foreign currency;
viii. Dividends received from foreign direct investment and portfolio investment
abroad;
ix. Interest received from portfolio investment abroad;
x. Interest payments on bonds, loans and other funds denominated
in foreign currency.

Appendix: ECB's website the exchange rates of each day of September 2020. Date GBP 30-09-20 0.91 29-09-20 0.91 28-09-20 0.91 25-09-20 0.91 24-09-20 0.91 23-09-20 0.92 22-09-20 0.92 21-09-20 0.92 18-09-20 0.91 17-09-20 0.92 16-09-20 0.91 15-09-20 0.92 14-09-20 0.92 11-09-20 0.92 10-09-20 0.92 09-09-20 0.91 08-09-20 0.90 07-09-20 0.90 04-09-20 0.89 03-09-20 0.89 02-09-20 0.89 01-09-20 0.89 36.78 HUF PLN RON ISK 365.53 4.55 4.87 162.20 365.70 4.54 4.87 162.00 364.12 4.55 4.87 162.40 363.16 4.56 4.88 161.80 364.45 4.53 4.88 161.80 365.01 4.50 4.87 161.40 362.05 4.49 4.86 162.00 363.08 4.48 4.86 161.60 RUB AUD BRL NZD PHP SGD THB 91.78 1.64 6.63 1.78 56.77 1.60 37.08 92.16 1.64 6.60 1.77 56.70 1.60 36.99 91.82 1.65 6.46 1.78 56.61 1.60 36.97 90.41 1.65 6.46 1.78 56.43 1.60 89.87 1.65 6.49 1.78 56.55 1.60 89.79 1.64 6.45 1.78 56.78 1.60 89.15 1.63 6.37 1.76 56.90 1.60 89.98 1.62 6.43 1.76 57.14 1.60 1.75 57.31 1.75 57.17 36.82 19.87 36.84 19.96 36.84 19.58 36.82 19.74 36.89 19.15 360.78 4.46 4.86 160.80 89.14 1.62 6.22 361.16 4.46 4.86 162.20 1.61 1.60 88.61 1.62 36.80 19.27 6.21 6.22 1.76 57.40 358.54 4.45 4.86 160.60 1.61 36.91 19.37 1.62 37.08 19.57 37.17 19.79 37.14 19.85 357.68 4.45 4.86 160.60 357.65 4.45 4.86 160.00 357.13 4.45 4.86 161.80 357.85 4.45 357.70 4.45 1.62 37.05 19.86 4.86 163.70 4.86 165.80 4.86 165.30 1.77 57.28 1.61 36.93 19.70 88.80 1.62 89.10 1.62 6.23 1.77 57.51 89.59 1.63 6.31 1.77 57.59 1.62 88.73 1.62 6.26 1.77 57.55 1.62 88.89 1.63 6.29 1.77 57.59 89.36 1.63 6.28 90.02 1.63 6.34 89.82 1.62 6.27 88.97 1.63 6.28 88.98 1.62 6.34 1.76 57.39 1.61 88.07 1.62 6.42 1.75 57.67 1.62 4.84 164.50 88.15 1.62 6.51 1.77 58.17 1.77 57.33 1.61 37.08 20.00 361.37 4.45 359.92 4.45 4.86 164.90 1.76 57.55 1.62 37.09 19.77 1.76 57.53 1.62 37.17 19.63 37.14 19.81 359.60 4.45 4.85 164.70 358.05 4.43 4.85 164.50 358.77 4.42 4.84 164.50 37.10 19.92 354.02 4.39 1.63 37.25 19.95 AN ZAR 19.71 19.87 19.89 19.90
Transcribed Image Text:Appendix: ECB's website the exchange rates of each day of September 2020. Date GBP 30-09-20 0.91 29-09-20 0.91 28-09-20 0.91 25-09-20 0.91 24-09-20 0.91 23-09-20 0.92 22-09-20 0.92 21-09-20 0.92 18-09-20 0.91 17-09-20 0.92 16-09-20 0.91 15-09-20 0.92 14-09-20 0.92 11-09-20 0.92 10-09-20 0.92 09-09-20 0.91 08-09-20 0.90 07-09-20 0.90 04-09-20 0.89 03-09-20 0.89 02-09-20 0.89 01-09-20 0.89 36.78 HUF PLN RON ISK 365.53 4.55 4.87 162.20 365.70 4.54 4.87 162.00 364.12 4.55 4.87 162.40 363.16 4.56 4.88 161.80 364.45 4.53 4.88 161.80 365.01 4.50 4.87 161.40 362.05 4.49 4.86 162.00 363.08 4.48 4.86 161.60 RUB AUD BRL NZD PHP SGD THB 91.78 1.64 6.63 1.78 56.77 1.60 37.08 92.16 1.64 6.60 1.77 56.70 1.60 36.99 91.82 1.65 6.46 1.78 56.61 1.60 36.97 90.41 1.65 6.46 1.78 56.43 1.60 89.87 1.65 6.49 1.78 56.55 1.60 89.79 1.64 6.45 1.78 56.78 1.60 89.15 1.63 6.37 1.76 56.90 1.60 89.98 1.62 6.43 1.76 57.14 1.60 1.75 57.31 1.75 57.17 36.82 19.87 36.84 19.96 36.84 19.58 36.82 19.74 36.89 19.15 360.78 4.46 4.86 160.80 89.14 1.62 6.22 361.16 4.46 4.86 162.20 1.61 1.60 88.61 1.62 36.80 19.27 6.21 6.22 1.76 57.40 358.54 4.45 4.86 160.60 1.61 36.91 19.37 1.62 37.08 19.57 37.17 19.79 37.14 19.85 357.68 4.45 4.86 160.60 357.65 4.45 4.86 160.00 357.13 4.45 4.86 161.80 357.85 4.45 357.70 4.45 1.62 37.05 19.86 4.86 163.70 4.86 165.80 4.86 165.30 1.77 57.28 1.61 36.93 19.70 88.80 1.62 89.10 1.62 6.23 1.77 57.51 89.59 1.63 6.31 1.77 57.59 1.62 88.73 1.62 6.26 1.77 57.55 1.62 88.89 1.63 6.29 1.77 57.59 89.36 1.63 6.28 90.02 1.63 6.34 89.82 1.62 6.27 88.97 1.63 6.28 88.98 1.62 6.34 1.76 57.39 1.61 88.07 1.62 6.42 1.75 57.67 1.62 4.84 164.50 88.15 1.62 6.51 1.77 58.17 1.77 57.33 1.61 37.08 20.00 361.37 4.45 359.92 4.45 4.86 164.90 1.76 57.55 1.62 37.09 19.77 1.76 57.53 1.62 37.17 19.63 37.14 19.81 359.60 4.45 4.85 164.70 358.05 4.43 4.85 164.50 358.77 4.42 4.84 164.50 37.10 19.92 354.02 4.39 1.63 37.25 19.95 AN ZAR 19.71 19.87 19.89 19.90
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