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Use the information in the chart below to answer the question related to investments made by XYZ Company. Marketable Date Cost Market Date Sale
Use the information in the chart below to answer the question related to investments made by XYZ Company. Marketable Date Cost Market Date Sale Market Equity Acquired Security (Fair) Value Sold Proceeds (Fair) Value 12/31/X9 12/31/X8 Company A 1/1/X8 Company B 1/1/X8 $24,000 36,000 $32,000 $19,000 NA 6/1/X9 $25,000 $14,000 1. Calculate the net total impact (realized plus unrealized) of the Marketable securities on the 20X9 income statement? If it is a net loss enter the amount in brackets. (18000) 2. The investment in Company A cost XYZ $24,000 on 1/1/X8. On 12/31/X8 the fair value of this Company A stock is $32,000. Consider the impact of this on the 20X8 indirect statement of cash flows. Is this increase of $8000 added to net income, or subtracted from net income? 3. What section of the 20X9 statement of cash flows shows the proceeds of $25,000 from sale of Company B stock? 4. What is the amount shown on the 12/31/X8 balance sheet for marketable securities?
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