What amount should Jamie Company report

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Q1) A cupcake company buys inventory and pays cash of $9,000. It also buys a mixer and pays $4,000. It pays $2,000 on a long-term liability and $500 in cash dividends. On a statement of cash flows, what should be listed as the cash outflow in connection with financing activities? (Please show all work).

Q2) Jamie Company had investments in marketable securities classified as available-for-sale costing $600,000. On June 30, 2018, Jamie Company reclassified the marketable securities as held-to-maturity. The market value of the investments was as follows: $550,000 on December 31, 2013, $510,000 on June 30, 2018, and $502,000 on December 31, 2018. Gerry Company does not elect the fair value option to account for these investments. What amount should Jamie Company report in its 2018 income statement as of December 31, 2018? (Please show all work).

Reference no: EM132270355

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