Assume the following:
€¢ Inflation and Turkish lira (YTL) devaluation is 30 percent per month, or 1.2 percent per workday.
€¢ Foreign exchange rates at selected intervals for the current month are:
1/1............................. 100.0
1/10........................... 109.6
1/20 ........................... 119.6
1/30 ........................... 130.0
€¢ The real rate of interest is 1.5 percent per month, or 20 percent per year.
€¢ Cash balances are kept in hard currency (dollars).
€¢ Month-end rates are used to record expense transactions.
Required:
Based on these assumptions, prepare a table showing the distortions that can occur when expense transactions totaling YTL 1,000,000 are recorded using conventional measurement rules (i.e., month-end rates in this example) instead of the internal reporting structure recommended in this chapter.

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Transactions: Invoice Date Payment Terms Cash 15 days 25 days