Question
Fuzzy Monkey Technologies, Inc., purchased as a short-term investment $140 million of 10% bonds, dated January 1, on January 1, 2018. Management intends to include
Fuzzy Monkey Technologies, Inc., purchased as a short-term investment $140 million of 10% bonds, dated January 1, on January 1, 2018. Management intends to include the investment in a short-term, active trading portfolio. For bonds of similar risk and maturity the market yield was 12%. The price paid for the bonds was $124 million. Interest is received semiannually on June 30 and December 31. Due to changing market conditions, the fair value of the bonds at December 31, 2018, was $130 million.
5. How would Fuzzy Monkey's 2018 statement of cash flows be affected by this investment? The answer is not 14 or 14.91 for operating Cash Flow
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