Suppose that a company is established with zero cash on 1 January 2019 and the following transactions occur in 2019. The company sells an inventory at a price of 50,000 TL. The cost of the inventory is 40,000 TL. The company receives 20,000 TL cash payment and a $6,000 check at the time of the sale when $1 = 5 TL (Turkish Liras). At the maturity date of the check, USD($) appreciates to 5.2 TL and the company immediately clears the check to its bank. In a physical count towards the end of the year, cash count shows 18,000 TL, which does not agree with the cash balance in the books. Unfortunately, the company cannot find the reason of the mismatch in any case. Assuming that there are no more transactions throughout the year, what would be the net profit or loss for that year? A) 8,000 TL B) 9,200 TL C) 10,800 TL D) 11,200 TL E) Other (Please Specify)
Suppose that a company is established with zero cash on 1 January 2019 and the following transactions occur in 2019. The company sells an inventory at a price of 50,000 TL. The cost of the inventory is 40,000 TL. The company receives 20,000 TL cash payment and a $6,000 check at the time of the sale when $1 = 5 TL (Turkish Liras). At the maturity date of the check, USD($) appreciates to 5.2 TL and the company immediately clears the check to its bank. In a physical count towards the end of the year, cash count shows 18,000 TL, which does not agree with the cash balance in the books. Unfortunately, the company cannot find the reason of the mismatch in any case. Assuming that there are no more transactions throughout the year, what would be the net profit or loss for that year?
A) 8,000 TL
B) 9,200 TL
C) 10,800 TL
D) 11,200 TL
E) Other (Please Specify)
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