An analysis of the Marketable Securities control account of Prosper Products, Inc., shows the following entries during the year:
Balance, Jan. 1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 290,000
Debit entries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 125,000
Credit entries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (140,000)
Balance, Dec. 31 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 275,000
In addition, the company’s income statement includes a $35,000 loss on sales of marketable securities. None of the company’s marketable securities is considered a cash equivalent.
Compute the amounts that should appear in the statement of cash flows as:
a. Purchases of marketable securities.
b. Proceeds from sales of marketable securities.