On January 1, 2012, Grain Company purchased investment securities costing $3,000 and classified them as available-for-sale. During 2012, Grain Company sold a portion of these available-for-sale securities with a cost of $1,800 for $1,500. The market value of the remainder of these securities available-for-sale at December 31, 2012, was $1,300. Grain prepares its statement of cash flows using the indirect method.
What represents the effect of these transactions on the statement of cash flows for Grain Company for the year ending December 31, 2012?
Operating Activities- $300 increase
Investing Activities- $ 1,500 decrease