[Accountant183748]

Not sure if you’ve seen this going around but I thought it would be fun to ask here. It’s a fun little riddle that is driving some people crazy 😁

A guy walks into the store and steals $100 bill from the register without the owner’s knowledge. He comes back 5 minutes later and buys $70 worth of goods with the $100 bill. The owner gives him back $30 in change. How much money did the owner lose?

[Anonymous]

$100?

[Accountant183748]

This is the original post on FB the comments are pretty funny.

https://m.facebook.com/story.php?story_fbid=1254756407914475&id=100001403825442

I initially thought $100 too but then got confused when looking at the comments. Hahah Maybe I am overthinking it

[NotYourAverageCPA]

Depends on the COGS.

• BEC - Pass Feb 2014
• AUD - Pass Feb 2014
• REG - Pass April 2014
• FAR- Pass May 2014

Licensed CPA - Jan 2016

• CISA - Pass June 2016
• CRISC - Pass December 2016

 

FAR - PASS
AUD - PASS
REG - PASS
BEC - PASS

NY CPA- Licensed Jan 2016
CISA Exam - Passed June 2016

[industryCPA]

$30 plus however much the goods were to him???

AUD - 72
BEC - 75
FAR - 82
REG - 80

It will all be worth it...hopefully

[Spartans92]

$200. 100 stolen + 70 worth of goods + 30 change. Whats the answer? Or 100? LOL

BEC - 76
REG- 67, 85
AUD-63, 74, 80!!
FAR-65, 62, 57, 79

3 down 1 more to go. BEC is on the Line 🙁

BEC- PASS

[Anonymous]

Spartans92 the thief gave the $100 bill back to the store, so he walked away with $70 of goods + $30 cash. I guess technically we should take COGS into account but I doubt whoever came up with this riddle had that in mind lol

[aaronmo]

$100 X (1-x) tax rate, because the loss is deductible.

The later transaction has nothing to do with the loss.

AUD - 96
BEC - 84
FAR - 89
REG - 86

Aaron and always remember, YMMV

I profit from your CPE frustration. You're welcome.

[aaronmo]

In terms of strictly cash liquidity, he's lost $30 from the register.

AUD - 96
BEC - 84
FAR - 89
REG - 86

Aaron and always remember, YMMV

I profit from your CPE frustration. You're welcome.

[Accountant183748]

I don't know what the answer is – everyone says something different.

Without tax implications, I was thinking $100 as well. I think that COGS wouldn't matter because he still could have sold the inventory for $70 no matter what COGS is so that is still lost.

[Spartans92]

LMAO!! I died when I saw the tax implications 🙂 Only accountants would care.

BEC - 76
REG- 67, 85
AUD-63, 74, 80!!
FAR-65, 62, 57, 79

3 down 1 more to go. BEC is on the Line 🙁

BEC- PASS

[aaronmo]

Thank you, thank you!

AUD - 96
BEC - 84
FAR - 89
REG - 86

Aaron and always remember, YMMV

I profit from your CPE frustration. You're welcome.

[aaronmo]

Now that I'm really thinking about it…he's lost more…

He lost ($100 x (1-x) x G))

Where x is tax rate and G is the growth rate…

So, using CAPM, his ANNUAL loss, but not for IS purposes, is:

($100 x (1-x)) x (risk free rate + beta(risk free rate-market rate))

AUD - 96
BEC - 84
FAR - 89
REG - 86

Aaron and always remember, YMMV

I profit from your CPE frustration. You're welcome.

[Missy]

Still $100

Old timer,  A71'er since 2010.

Finance manager/HR manager

 

 

Licensed Massachusetts Non Reporting CPA since 2012
Finance/Admin/HR Manager

[kayfcpa16]

$100 – originally stolen – amount returned = $0 loss
$70 – inventory purchased = $70 loss
$30 – Change given = $30 loss

$100 – Total Loss (Cash & Inventory)

May the force be with you .

BEC - 78 (2/16)

FAR - 78 (2/16)

AUD - 69 (8/16), 75 (10/16)

REG - 65 (8/16), 65!! (10/16) - Just Shoot Me [Re - Retake (1/17) 75!] ..

DONEEEEEEEE

 

FAR - 2/16 - 78
BEC - 2/16 - 78
AUD - 8/16
REG - 8/16

[Char143]

I got $100

I just look at it as what the thief made out with.. He got 100 worth of items, he just changed it it from $70 cash to $70 worth in items.

In my head the thief basically stole $70 in items and $30 in cash?

So what he stole is what the owner lost, as the cpa exam would say “disregarding COGS information”..

AUD - 84
BEC - 79
FAR - 78
REG - 79

I'm done! 🙏🏼

 

Licensed CPA

AUD (2/16)-84
REG (05/16)-69 Retake (7/16)-79 (ty ninja MCQ)
BEC-TBD
FAR-9/8/16

[Author]

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