2012103 Varahs Corp. The following data pertain to marketable securities portfolio of Varahs Corp., a large US insurance company. Assume all securities were purchased on Dec 31, 2016. Investment Portfolio $000s Balance Sheet, December 31, 2016 2017 2018 2019 Harold's Chicken Shack: Fixed Maturities Held - to - maturity (at cost)* S 10,700 $ 10,700 S 9,630 $ 12,840 Intelligentsia Coffee: Fixed Maturities Available-for-sale at market)** S 24,000 $ 25,000 $ 26,688 $ 37,500 International Pool Tour: Stocks Trading (at market) *** S 48,000 $ 50,000 $ 53,375 5 75,000 Total 82,700 5 85,700 5 89,693 $ 125,340 $ $ 5 * Fair Market values ** Cost *** Cost $ 5 5 9,600 26,750 53,500 5 $ 5 10,000 26,750 53,500 5 5 $ 10,675 24,075 48,150 $ $ s 15,000 32.100 64,200 Proceeds from sale of securities on December 30, 2018 Harold's Chicken Shack: Fixed Maturities 5 1,177 Intelligentsia Coffee: Fixed Maturities 5 2,943 International Pool Tour: Stocks $ 5,885 Au 1,445 3,611 7,223 Purchase of securities on December 30, 2019 Harold's Chicken Shack: Fixed Maturities 5 Intelligentsia Coffee: Fixed Maturities 5 International Pool Tour: Stocks 5 Interest / Dividend Income Harold's Chicken Shack: Fixed Maturities Intelligentsia Coffee: Fixed Maturities 5 International Pool Tour: Stocks International Pool Tour 2017 Earnings per share, $ $ 428 1,070 2.140 $ $ S 385 963 1.926 S $ $ 449 1,124 2,247 $ 2018 $ 3.00 3.10 The stock price of International Pool Tour was $24 on Dec 31, 2016. Required [For ROA computations use only the beginning asset values in the denominator. Do not use averages.] i Compute the reported investment income for the three securities separately for 2018. a Harold's Chicken Shack: Fixed Maturities Income for the year 2018 b Intelligentsia Coffee: Fixed Maturities Income for the year 2018 c International Pool Tour: Stocks Income for the year 2018 2012103 Varahs Corp. The following data pertain to marketable securities portfolio of Varahs Corp., a large US insurance company. Assume all securities were purchased on Dec 31, 2016. Investment Portfolio $000s Balance Sheet, December 31, 2016 2017 2018 2019 Harold's Chicken Shack: Fixed Maturities Held - to - maturity (at cost)* S 10,700 $ 10,700 S 9,630 $ 12,840 Intelligentsia Coffee: Fixed Maturities Available-for-sale at market)** S 24,000 $ 25,000 $ 26,688 $ 37,500 International Pool Tour: Stocks Trading (at market) *** S 48,000 $ 50,000 $ 53,375 5 75,000 Total 82,700 5 85,700 5 89,693 $ 125,340 $ $ 5 * Fair Market values ** Cost *** Cost $ 5 5 9,600 26,750 53,500 5 $ 5 10,000 26,750 53,500 5 5 $ 10,675 24,075 48,150 $ $ s 15,000 32.100 64,200 Proceeds from sale of securities on December 30, 2018 Harold's Chicken Shack: Fixed Maturities 5 1,177 Intelligentsia Coffee: Fixed Maturities 5 2,943 International Pool Tour: Stocks $ 5,885 Au 1,445 3,611 7,223 Purchase of securities on December 30, 2019 Harold's Chicken Shack: Fixed Maturities 5 Intelligentsia Coffee: Fixed Maturities 5 International Pool Tour: Stocks 5 Interest / Dividend Income Harold's Chicken Shack: Fixed Maturities Intelligentsia Coffee: Fixed Maturities 5 International Pool Tour: Stocks International Pool Tour 2017 Earnings per share, $ $ 428 1,070 2.140 $ $ S 385 963 1.926 S $ $ 449 1,124 2,247 $ 2018 $ 3.00 3.10 The stock price of International Pool Tour was $24 on Dec 31, 2016. Required [For ROA computations use only the beginning asset values in the denominator. Do not use averages.] i Compute the reported investment income for the three securities separately for 2018. a Harold's Chicken Shack: Fixed Maturities Income for the year 2018 b Intelligentsia Coffee: Fixed Maturities Income for the year 2018 c International Pool Tour: Stocks Income for the year 2018
