Indicate how each of the following transactions or events would be reflected in a statement of cash

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Indicate how each of the following transactions or events would be reflected in a statement of cash flows prepared using the indirect method. Each transaction or event is independent of the others. For items (a) and (d), assume that the balance in the market adjustment account was zero at the beginning of the year. In all cases, assume that trading securities were acquired for operating purposes.
(a) At year-end, the trading securities portfolio has an aggregate cost of $185,000 and an aggregate fair value of $150,000.
(b) During the year, trading securities and available-for-sale securities were purchased for $50,000 and $70,000, respectively. The securities were paid for in cash.
(c) Trading securities on hand at the beginning of the period (cost $40,000) were sold for $62,000 cash.
(d) At year-end, the trading securities portfolio has an aggregate cost of $170,000 and an aggregate fair value of $190,000.

Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...
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Intermediate Accounting

ISBN: 978-0324592375

17th Edition

Authors: James D. Stice, Earl K. Stice, Fred Skousen

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