Question
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?
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