The Cow Math Test

The Cow Math Test

It seems like a harmless riddle, almost a children’s game… And yet, this very simple scenario of buying and selling cows often challenges our accounting logic. Ready to rack your brains? Embark on a little journey through the numbers… with a touch of humor.

First act: the purchase at €800

Imagine this: You come across a beautiful cow (yes, she looks healthy), and you buy her for  800 euros . So far, so simple. That’s your initial investment.

First sale: €1,000 in your pocket

Good news! You sell that famous cow for  1,000 euros . A quick subtraction: 1,000 – 800 =  200 euros profit . Easy, right?  But the story doesn’t end there…

You buy it back… for more!

Hold on tight: you buy that same cow (or another, equally charming one) for  1,100 euros . Now  you’re starting to hesitate.  You had 1,000 euros after the first sale, so you have to  add 100 euros from your own pocket.  Here we go again, an investment!

Second sale: another profit?

This time you sell the cow for  1,300 euros . Here we go again: 1,300 – 1,100 =  another 200 euros profit . You might think we’re going around in circles…  but the numbers are clear.

So what is the real total benefit?

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