What does it mean for the companies to aggregate payments

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Question - An affiliated group of companies makes payments to each other as indicated on the table below. (All amounts are indicated in US dollars.)


payee

Payor


Australia

France

Korea

Taiwan

UK

Australia


45000

121000

65000

113000

France

97000


33000

69000

55000

Korea

115000

65000


90000

106000

Taiwan

35000

124000

104000


37000

UK

27000

33000

82000

95000


a. What does it mean for the companies to aggregate payments made to each other company?

b. What payments should be made if this group of companies use multilateral netting?

c. What payments should be made if they use multilateral netting?

d. What payments would be made if the Taiwan Company acts as a re-invoicing center for this group of companies?

Reference no: EM132162833

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