Cash from investing activities: It is the total cash from gains or losses from financial investment. This includes proceeds from sale and purchase of fixed assets, long term assets and investments.
Unrealized holding gains and losses: An unrealized gain is a profit recorded on paper results from the investment. It occurs when shares prices increase after investor purchases it, but an individual has to sell it, till the time it is not sold the amount of increase in share price is recorded as an unrealized gain.
An unrealized loss is a loss recorded on paper results from the investment. It occurs when shares prices decrease after investor purchases it, but an individual has to sell it, till the time it is not sold the amount of decrease in share price is recorded as an unrealized loss.
Cost method of accounting: Under cost method of accounting, investments are accounted for at historical or original cost.
(a) To determine: To determine for each of the company:
- Cash used in (for) investing activities during 2014 (from the statement of
cash flows ). - Total other comprehensive income for the year 2014.
- The unrealized gains or losses reported as part of other comprehensive income.
Given information: All the information related to C & P Company is provided in the question document.
(b) To determine: To determine the investments it reported as being accounted for under the equity method from Coca-Cola’s December 31, 2014,
Given information: All the information related to C & P Company is provided in the question document.
(c) To determine: To determine the C’s policy regarding its cost method investments.
Given information: All the information related to C & P Company is provided in the question document.
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