Assume the following:
• Inflation and Zambian kwacha (ZMK) 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 ZMK 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.
Transactions:
Invoice Date Payment Terms
1 ......... Cash
5 15 ....... days
5 25 ....... days