JPMorgan Chase carries portfolios of both trading securities and available-for-sale securities. At the end of 2008 and 2007, the trading securities were valued at $347.4 billion and $414.3 billion, respectively; and the available-for-sale securities were valued at $205.9 billion and $85.4 billion, respectively. Together, the investments comprise about 25 percent of the company's total assets as of December 31, 2008. Unrealized gains reported on the 2008 income statement totaled $9.9 billion. a. Trading securities are carried on the balance sheet at market value. Compute the net decrease in the investment in trading securities during 2008. b. The net increase in the investment in available-for-sale securities reported on the statement of cash flows during 2008 was approximately $107.4 billion. Compute the unrealized net gains on the available-for- sale securities during 2008. On which financial statement would this dollar amount be found?

Assume the following is a portion of the investment footnote from MetLife’s 2016 10-K report. Investment earnings are a crucial component of the financial performance of insurance companies such as MetLife, and investments comprise a large part of Metlife’s assets. MetLife accounts for its bond investments as available-for-sale securities. a. $223,926 million, $8,329 million gainb. $230,050 million, $6,124 million gainc. $223,926 million, $6,124 million gaind. $230,050 million, $2,205 million loss

Ava’s SpinBall Corp. lists fixed assets of $31 million on its balance sheet. The firm’s fixed assets have recently been appraised at $54 million. Ava’s SpinBall Corp.’s balance sheet also lists current assets at $24 million. Current assets were appraised at $44 million. Current liabilities’ book and market values stand at $6 million, and the firm’s book and market values of long-term debt are $26 million. Calculate the book and market values of the firm’s stockholders’ equity. Construct the book value and market value balance sheets for Ava’s SpinBall Corp. (Enter your answers in millions of dollars.)       BOOK VALUE MARKET VALUE   (in millions of dollars) Assets     Current assets     Fixed assets     Total $0 $0 Liabilities and Equity     Current liabilities     Long-term debt     Stockholders' equity     Total $0 $0

Many companies hold a significant portion of their financial assets in the form of marketable securities. For example, Microsoft Corporation recently reported investments in marketable securities totaling 28.3 billion, an amount equal to 59 percent of its total financial assets. In contrast, only 26 percent of its financial assets were in the form of accounts receivable. Define marketable securities (also referred to as short-term investments). What characteristics of these securities justify classifying them as financial assets? What is the basic advantage of Microsoft Corporation keeping financial assets in the form of marketable securities instead of cash? Is there any disadvantage? Explain how Microsoft Corporation values these investments in its balance sheet.

On January 1, 2016, a company's balance sheet reports its investments in debt securities as follows: Assets Investment in trading securities Investment in AFS securities Investment in HTM securities Equity Accumulated other comprehensive income: Unrealized gains (losses) on AFS securities Additional information: a. The HTM securities are $210,000 face value securities purchased on January 1, 2014, at a yield of 4%. The securities have a 4-year total life and pay interest annually on December 31, at a coupon rate of 6%. $165,000 95,000 217,922 $4,500 b. The trading securities on hand on January 1 were sold in 2016 for $185,000. c. More trading securities were purchased for $105,000. They are still on hand at December 31, 2016, and have a fair value of $120,000. d. AFS securities, originally purchased for $27,000 with a carrying value of $24,000 as of January 1, 2016, were sold for $32,000. e. AFS securities on hand at December 31, 2016, have a fair value of $85,000 $20,000 $15,000…

Use the information for the question(s) below.   In November 2009, Perrigo Co. (PRGO) had a share price of $39.20.  They had 91.33 million shares outstanding, a market-to-book ratio of 3.76.  In addition, PRGO had $845.01 million in outstanding debt, $163.82 million in net income, and cash of $257.09 million. Perrigo's market capitalization is closest to: A) $952.16 million B) $3,580.14 million C) $4,168.06 million D) $4,425.15 million

Use the information for the question(s) below.   In November 2009, Perrigo Co. (PRGO) had a share price of $39.20.  They had 91.33 million shares outstanding, a market-to-book ratio of 3.76.  In addition, PRGO had $845.01 million in outstanding debt, $163.82 million in net income, and cash of $257.09 million. Perrigo's market debt to equity ratio is closest to: A) 0.24 B) 0.50 C) 0.75 D) 0.89

[The following information applies to the questions displayed below.] Stoll Company's long-term available-for-sale portfolio at the start of this year consists of the following. Fair Value $ 492,000 150,000 641,950 Cost $ 533,600 159, 310 661,900 Stoll enters into the following transactions involving its available-for-sale debt securities this year. January 29 Sold one-half of the Company B notes for $78,430. July 6 Purchased Company X bonds for $120,800. Required: 1. Prepare journal entries to record these transactions, including the December 31 adjusting entry to record the fair value adjustment for the long-term investments in available-for-sale securities. 2. Determine the amount Stoll reports on its December 31 balance sheet for its long-term investments in available-for-sale securities. Available-for-Sale Securities Company A bonds Company B notes Company C bonds. November 13 Purchased Company Z notes for $267,100. December 9 Sold all of the Company A bonds for $524,100. Fair…

In December 2018​, General Electric​ (GE) had a book value of equity of $51.4 ​billion, 8.6 billion shares​ outstanding, and a market price of $8.09 per share. GE also had cash of $69.3 ​billion, and total debt of $109.6 billion. a. What was​ GE's market​ capitalization? What was​ GE's market-to-book​ ratio? b. What was​ GE's book​ debt-equity ratio? What was​ GE's market​ debt-equity ratio? c. What was​ GE's enterprise​ value?

In December 2018, General Electric (GE) had a book value of equity of $51.3 billion, 8.9 billion shares outstanding, and a market price of $7.92 per share. GE also had cash of $69.7 billion, and total debt of $108.9 billion. a. What was GE's market capitalization? What was GE's market-to-book ratio? b. What was GE's book debt-equity ratio? What was GE's market debt-equity ratio? c. What was GE's enterprise value? a. What was GE's market capitalization? GE's market capitalization was $enter your response here billion. (Round to one decimal place.)