Miss Maggie Company entered into the following transactions during the year: Purchase of trading securities . .

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Miss Maggie Company entered into the following transactions during the year:
Purchase of trading securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $500
Sale of trading securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 220
Purchase of available-for-sale securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 900
Sale of available-for-sale securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 470
Miss Maggie had no investment securities at the beginning of the year. The cost of the trading securities sold was $300; the cost of the available-for-sale securities sold was $150. The fair value of the remaining securities on December 31 was as follows: trading securities, $310; available-for-sale securities, $460. The net income for the year was $1,000. Assume that net income does not include any noncash items except for those related to investment securities. In all cases, assume that trading securities were acquired for operating purposes. Compute
(1) Cash flow from operating activities and
(2) Cash flow from investing activities.

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Intermediate Accounting

ISBN: 978-0324592375

17th Edition

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

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