Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Cold Cat Inc., a snowmobile manufacturer, reported the following in its 20X5 annual report to shareholders: NOTE BSHORT-TERM INVESTMENTS Short-term investments consist primarily of a

Cold Cat Inc., a snowmobile manufacturer, reported the following in its 20X5 annual report to shareholders:

NOTE BSHORT-TERM INVESTMENTS

Short-term investments consist primarily of a diversified portfolio of municipal and corporate bonds and are classified as follows at March 31:

20X520X4Trading securities$64,433,000$55,282,000Available-for-sale debt securities3,196,0007,113,000$67,629,000$62,395,000

Trading securities consist of $54,608,000 and $41,707,000 invested in various corporate bonds at March 31, 20X5 and March 31, 20X4, respectively, while the remainder of trading securities and available-for-sale securities consist primarily of A-rated or higher municipal bond investments. The amortized cost and fair value of debt securities classified as available-for-sale was $3,105,000 and $3,196,000, at March 31, 20X5. The unrealized holding gain on available-for-sale debt securities is reported, net of tax, as a separate component of shareholders' equity.

Cold Cat Inc.

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY

Years Ended March 31

Accumulated Other Comprehensive Income changed by the following amounts:

20X4:Loss on investments, net of tax (unrealized)$(154,000)20X5:Loss on investments, net of tax (unrealized)(140,000)20X520X4Cash flows from

investing activities:Sale and maturity of

available-for-sale securities$3,703,000$1,729,000

In its 20X4 annual report, Cold Cat disclosed, "The contractual maturities of available-for-sale debt securities at March 31, 20X4, are $3,573,000 within one year and $3,340,000 from one year through five years."

Required:

How much did Cold Cat actually receive from thesaleof available-for-sale securities during 20X5?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Income Tax Fundamentals 2013

Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill

31st Edition

1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516

Students also viewed these Accounting questions