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Fuzzy Monkey Technologies, Inc., purchased as a short-term investment $120 million of 6% bonds, dated January 1, on January 1, 2013. Management intends to include the investment in a short-term, active trading portfolio. For bonds of similar risk and maturity the market yield was 8%. The price paid for the bonds was $100 million. Interest is received semiannually on June 30 and December 31. Due to changing market conditions, the fair value of the bonds at December 31, 2013, was $110 million. Record the fair value adjustment How would Fuzzy Monkey’s 2013 statement of cash flows be affected by this investment? Operating Cash Flow Investing Cash flow |
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