Explore BrainMass

Explore BrainMass

    Compute cash flow from operating and from investing

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    EXERCISE 14-41
    GAIN AND LOSSES AND THE STATEMENT OF CASH FLOWS

    Miss Maggie Company entered into the following transactions during the year:

    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 market 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.

    Compute (1) cash flow from operating activities and (2) cash flow from investing activities.

    For negative or subtractive numbers, use parentheses. example (34,500).

    (1) cash flow from operating activities $
    (2) cash flow from investing $

    © BrainMass Inc. brainmass.com June 3, 2020, 11:44 pm ad1c9bdddf
    https://brainmass.com/business/accounting/compute-cash-flow-operating-investing-295073

    Solution Preview

    ANSWERS

    Cash flow from operating activities
    Net income* $1,000
    Cash flows provided by operating activities $1,000

    *Since there is no non-cash activity, the net income is also equal to the cash flows provided by ...

    Solution Summary

    The expert computes cash flows from operating and from investing.

    $2.19

    ADVERTISEMENT