Question

Please help me only with an operating cash flow for requirment #5

2 Problem 12-2 Trading securities; bond investment; effective interest [LO12-1, 12-3] Fuzzy Ilonkey Technologies, Inc., purchased as a short-term investment $230 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 $210 million. Interest is received semiannually on June 30 and December Due to changing market conditions, the fair value of the bonds at December 31, 2018, was $220 million 10 points Required: 1. to 3. Prepare the relevant journal entries on the respective dates (record the interest at the effective rate). 4-a. At what amount will Fuzzy Monkey report its investment in the December 31, 2018, balance sheet? 4-b. Prepare any entry necessary to achieve this reporting objective. 5. How would Fuzzy Monkey's 2018 stetement of cash flows be affected by this investment? O Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below Req 1 to 3 Req 4A Req 48 Req S How would Fuzzy Monkey's 2018 statement of cash flows be affected by this investment? (Do not round intermediate ter your answers in millions rounded to i decimal place, 0.a. 5.500,000 should be entered as 5.2) Operating cash tow 25.3 million outlow Investing cash towS 0.0.mil on ___ Inoene o 00 million < Prex 2 of E Next >

Answer 1

I am changing my answer to 187mn if it is correct I will give the explanation the interest expense for period 1=(210*10^6*12%/2)=12600000 and for 2nd period it is =(211100000*12%/2)=12666000 and total is 25266000 and unrealized gain=220000000-212266000=7734000 and the total operating cahs flow=220000000-(7734000+25266000)=187000000

answer is 187