During Year 1, its first year of operations, Galileo Company purchased two available-for-sale investments as follows: Security Shares Purchased Cost Hawking Inc. 590 $20,709 Pavlov Co. 1,600 29,280 Assume that as of December 31, Year 1, the Hawking Inc. stock had a market value of $42 per share and the Pavlov Co. stock had a market value of $33 per share. Galileo Company had net income of $160,500 and paid no dividends for the year ending December 31, Year 1. All of the available-for-sale investments are classified as current assets. a. Prepare the Current Assets section of the balance sheet presentation for the available-for-sale investments.

Please see below for answer

Explanation:

Security Shares       Purchased Cost

Hawking Inc.              590        $20,709

Pavlov Co.                1,600        $ 29,280

total                                            $49,989

In December 31st, the Hawking Inc. stock with  market value of $42 per share and the Pavlov Co. stock had a market value of $33

Stock        Number of shares       market value per share   value

Hawking Inc.     $42                       590                       $24,780

Pavlov Co.        $33                     1600                          $52,800

Total  value                                                                    $77,580

Unrealized gain/loss =  $77,580-   $49,989= $27,591

Galileo Company  Balance sheet

Current assets

Available for sale investments at cost             $49,989

Allowance available for sale investments         $27,591

Available for sale at fair value                          $77,580 

answer(c) factors of production;

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