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 $
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 ...
The expert computes cash flows from operating and from investing.