The Following Transactions Occurred During the Year for XYZ Corporation

question 115

Essay

The following transactions occurred during the year for XYZ Corporation:
(a. )During the year,trading securities were purchased for $250,000.
(b. )During the year,securities available for sale were purchased for $80,000.
(c. )During the year,trading securities that are carried on the balance sheet at their fair value of $125,000 were sold for $125,000 cash.
(d. )At the end of the year,the trading securities portfolio has an aggregate market value of $142,000 and an aggregate cost of $150,000.
(e. )At the end of the year the securities available for sale portfolio has an aggregate market
value of $95,000.
Required:
Indicate how each of these transactions would affect the statement of cash flows for a corporation.Assume the statement of cash flows is prepared using the indirect method.Each transaction is assumed to be independent of the other transactions.

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Definitions:

Partial Listening

Listening to someone with divided attention, where the listener may not fully comprehend or retain the information shared.

Distractions

External or internal factors that divert an individual's attention away from the task at hand, potentially decreasing productivity and performance.

Culture Specific

Characteristics, beliefs, or practices that are unique to a particular society, community, or group.

Unconsciously

Occurring without one's awareness, reflecting actions or thoughts that are not controlled or deliberated by the conscious mind.