Exercise E-4 Preparing financial statements for investment securities Molten, Inc. began Year 2 with $100,000 in both cash and common stock. The company engaged in the following investment transactions during Year 2: 1. Purchased $20,000 of marketable investment securities 2. Earned $600 cash from investment revenue 3. Sold investment securities for $14,000 that cost $10,000. 4. Purchased $7000 of additional marketable investment securities 5. Determined that the investment securities had a fair value of $22,000 at the end of Year 2 Required Use a vertical statements model to prepare Income statements, balance sheets, and statements of cash flow for Molton, Inc., assure the securities were ta) held to maturity. (6) trading, and (available for sale. (Statement of Cosh Flows only: Items to be deducted and cash outflows must be indicated with a minus sign.) MOLTEN, INC. Financial Statements For Year Ending Year 2 Held-to- Maturity Classified as: Trading Available-for- Sale Income Statements S 0 S Net Income Balance Sheets Assets Total assets 0 $ 0 $ 0 Stockholders' equity $ 0 $ 0 S 0 Total stockholders' equity Statements of Cash Flows Cash flows from operating activities Not cash flow from operating activities 0 O Statements of Cash Flows Cash flows from operating activities 0 0 0 Net cash flow from operating activities Cash flows from investing activities 0 0 0 Net cash flow from investing activities Cash flows from financing activities 0 0 0 Net cash flow from financing activities Net change in cash Ending cash balance 0 S 0 $ 0