Cash Flow and Trading Securities
Refer to Practice 14–18. Assume that the securities are classified as trading. Compute (1) cash flow from operating activities and (2) cash flow from investing activities.
Practice 14–18
Cash Flow and Available for Sale Securities
The company entered into the following transactions during the year:
|
Purchase of investment securities |
$400 |
|
Sale of investment securities |
470 |
The company had no investment securities at the beginning of the year. The cost of the investment securities sold was $350. The market value of the remaining securities was $65 on December 31.The net income for the year was $880. Assume that net income does not include any noncash items and does not reflect gains or losses related to investment securities. Assume that the securities are classified as available for sale. Compute (1) cash flow from operating activities and (2) cash flow from investing activities.