An analysis of the Marketable Securities control account of Fancher Products, Inc., shows the following entries during the year.
Balance, Jan. 1....................... $ 290,000
Debit entries ........................ 125,000
Credit entries ....................... (140,000)
Balance, Dec. 31 ..................... $ 275,000
In addition, the company's income statement includes a $25,000 loss on sales of marketable securities. None of the company's marketable securities is considered a cash equivalent.
Compute the amounts that should appear in the statement of cash flows as:
a. Purchases of marketable securities.
b. Proceeds from sales of marketable securities.