Cold Cat Inc., a snowmobile manufacturer, reported the following in its 20X5 annual report to shareholders: NOTE
Question:
Cold Cat Inc., a snowmobile manufacturer, reported the following in its 20X5 annual report to shareholders:
NOTE B—SHORT-TERM INVESTMENTS
Short-term investments consist primarily of a diversified portfolio of municipal and corporate bonds and are classified as follows at March 31:
| 20X5 | 20X4 | |||||
| Trading securities | $ | 64,433,000 | $ | 55,282,000 | ||
| Available-for-sale debt securities | 3,196,000 | 7,113,000 | ||||
| $ | 67,629,000 | $ | 62,395,000 | |||
Trading securities consist of $54,608,000 and $41,707,000 invested in various corporate bonds at March 31, 20X5 and March 31, 20X4, respectively, while the remainder of trading securities and available-for-sale securities consist primarily of A-rated or higher municipal bond investments. The amortized cost and fair value of debt securities classified as available-for-sale was $3,105,000 and $3,196,000, at March 31, 20X5. The unrealized holding gain on available-for-sale debt securities is reported, net of tax, as a separate component of shareholders' equity.
Cold Cat Inc.
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
Years Ended March 31
Accumulated Other Comprehensive Income changed by the following amounts:
| 20X4: | |||
| Loss on investments, net of tax (unrealized) | $ | (154,000 | ) |
| 20X5: | |||
| Loss on investments, net of tax (unrealized) | (140,000 | ) | |
| 20X5 | 20X4 | ||||
| Cash flows from investing activities: | |||||
| Sale and maturity of available-for-sale securities | $ | 3,703,000 | $ | 1,729,000 | |
In its 20X4 annual report, Cold Cat disclosed, "The contractual maturities of available-for-sale debt securities at March 31, 20X4, are $3,573,000 within one year and $3,340,000 from one year through five years."
