Currencies and Conversion

Hello John,

When doing problems with currencies I’m having a hard time choosing when to divide or multiply, so I’ve devised for myself a little rule looking at the transaction from the company’s view. This has been working thus far until now.

RULE – Ask myself if transaction is a payment or receipt,

What currency is required

If transaction currency is stronger – divide; if weaker x

If a payment – buy high; a receipt sell low

I’m totally lost on pg 442 eg 2 of the BBP Text because since the transaction is a receipt and the Yen weaker than the Aus$ (hence the Aus stronger) why isn’t it multiplying by 15,000,000 and then depositing at the low rate of $62.6000.

I’ve been at this for a while now and just cant seem to get these rules consistently. Please help me, I desperately need guidance.

Thanks