Exercise E-3 Effect of investment securities transactions on financial statements The following information pertains to Blotter Supply Co for Your 1 Purchased $100,000 of marketable investment securities 2 Earned $10000 of canh investment revenue 3. Sold for $30,000 secures that cost $25,000 4 The fair value of the remaining secutes at Decembes 31 War 1 was $5000 Required Recond the four events in a statements model ke the following ne Use a separate model for each classification maturity (2) ading, and Cable for sale the Cash Flow column, indicate whether the event an operating acty investing activity AL francing activity A or oet change in cash NC he NA to indicate that an element was not affected b event. The fest event for the first classification is shown an an enter any decreases to account belences and cach BOTTER SUPPLY CO Horizontal Statements Models Balance Sheet come Statement Investment Liabilities Gash 1) Held-to-Maturity Retained Earnings Uvealed Reven Expense Gain Gain Casis Fixe 100,000 100,000 100.000 2 3. (100 000)) 100.000 2) Trading 2 3 Asable-for-Sale b. What is the amount of net income under each of the three classifications? Hed to Maturity Tradeg Aviatio for Sale Net Income e. What is the change in cash from operating activities under each of the three classifications? (Llet any cash outflows w sign) Maturity Operating Activies aces Exercise E-3 Effect of investment securities transactions on financial statements The following information pertains to Botter Supply Co. for Year 1: 1. Purchased $100,000 of marketable investment securities. 2. Earned $10,000 of cash investment revenue. 3. Sold for $30,000 securities that cost $25,000 4. The fair value of the remaining securities at December 31, Year 1, was $89,000. Required a. Record the four events in a statements model like the following one. Use a separate model for each classification: (1) held to maturity. (2) trading, and (3) available for sale. In the Cash Flow column, indicate whether the event is an operating activity (OA). investing activity (IA), financing activity (FA), or net change in cash (NC). Use NA to indicate that an element was not affected by the event. The first event for the first classification is shown as an example. (Enter any decreases to account balances and cash outflam with a minus sign.)