
Concept Introduction:
Trading securities are the investments made in the securities with the intent to sell them in short-term.
The Fair-Value adjustments are recorded at the year-end to record the deviations from the price at which securities have been purchased. If the fair value of the shares at the year-end are more than the price at which shares are purchased, the unrealized gain will be recorded, if it less than unrealized loss is recorded and fair value adjustment accounts are created.
The brokerage amount is added to the total amount of purchase in case of the shares purchased and deducted in case of the sale of the shares.
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Chapter 15 Solutions
Loose Leaf for Fundamental Accounting Principles
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- Omega Manufacturing reported its net income as $500,000 last year. A review of its income statement shows that: Operating expenses (excluding depreciation and amortization) were $1,200,000 Depreciation and amortization expense was $250,000 Tax rate: 30% The firm has no debt (financed with stock only). a. What were Omega's sales revenues last year? b. What was Omega's net cash flow last year? c. What was Omega's operating cash flow last year?arrow_forwardWhat is the budgeted cost of goods sold COGS FOR JUNE?arrow_forwardGive me answerarrow_forward
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