Use the Following Cash Flow Data of Haven Hardware for the Year

question 13

Multiple Choice

Use the following cash flow data of Haven Hardware for the year ended 31 December 2013. What is the net increase or decrease in cash for Haven Hardware for 2013?

• A)($94 000)
• B)($88 000)
• C)$88 000
• D)$188 000

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Definitions:

Long-Term Investments-Trading

Long-term investments-trading refers to the purchase of securities with the intention of holding them for an extended period to benefit from their long-term appreciation, dividends, or interest earnings.

Bonds

Fixed-income securities that represent a loan made by an investor to a borrower, typically corporate or governmental.

Interest Accrued

The amount of interest that has accumulated over time but has not yet been paid or charged.

Par Value

The nominal value of a bond or stock as declared by the issuer, which might not represent its actual market value.