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:

Pituitary Gland

A pea-sized gland located at the base of the brain; it releases hormones that regulate growth, metabolism, and the function of other glands.

Hormones

Chemical messengers produced in the body that regulate the activity of cells or organs, crucial for many bodily functions.

Oxytocin

A hormone and neurotransmitter involved in childbirth and lactation, also associated with social bonding and behavior.

Uterine Contractions

The tightening and relaxation of the uterine muscles, naturally occurring during menstruation and labor to help expel the lining or to assist in childbirth.