Efficient Funds Flow at Eastern Trading Company

The Eastern Trading Company of Singapore purchases spices in

bulk from around the world, packages them into consumer$-$size

quantities and sells them through sales affiliates in Hong Kong,

the United Kingdom and the United States. For a recent month,

the payments matrix of interaffiliate cash flows $($at right$),$ stated

in Singapore dollars, was forecast. Show how Eastern Trading

can use multilateral netting to minimize the foreign exchange

transactions necessary to settle interaffiliate payments. If

foreign exchange transactions cost the company $0\mathrm{.}5$ percent,

what savings result from netting?

Eastern Trading Company Payments

Matrix $($$$$000)$