The following information was obtained from the financial statements of XYZ Corporation. Balance Sheet Trading Securities,...

The following information was obtained from the financial statements of XYZ Corporation.

Balance Sheet
Trading Securities, 12/31/19 $181
Trading Securities, 12/31/20 $89

Income Statement

Unrealized Gain on Trading Securities $48
Loss on Sale of Trading Securities $15

Determine the amount of "Cash Received from Sale of Trading Securities" which should be reported on XYZ Corporation's statement of cash flows for the year ending 12/31/20.

Expert Solution

Answer = $ 125
Explanation :

General Journal	Debit	Credit
Fair value adjustment -Trading securities	$ 48
Unrealized holding gain or loss		$ 48
(To record Unrealized gain on Trading securities)

Here ,Sale of trading securities = Beginning Trading securities - Ending Trading Securities

Sale of Trading securities = $ 181 - $ 89

Sale of Trading securities = $ 92

General Journal	Debit	Credit
Cash ( $92 + $48 -$ 15 )	$ 125
Realized loss on sale of Trading securities	$ 15
Trading Securities (Sales )		$ 92
Fair value adjustment -Trading securities		$ 48
(To record sale of Trading securities )

So, Cash received from sale of Trading Securities is $ 125 and
this $ 125 should be reported XYZ Corporation statement of
cash flows as Cash flow from Investing Activities for Year ending 12/31/20.

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