A customer is short 100 shares of PDQ stock at $62 per share. The stock goes up to $67 and the customer covers the position. If, 30 days later, the customer decides to re-establish this short position when the market for PDQ is $65, what will the sale proceeds be

$60 per share

Explanation:

Given the transaction above, the customer intend to take a loss and then reestablish the position.

Thus, going by "wash sale" rule, the loss deduction is disallowed in a situation where by the position is reestablished within 30 days of the date the loss was generated.

Hence, In this case the customer initially sold short the stock at $62. The stock was later repurchased at $67, for a $5 loss per share which equate to $500 loss on 100 shares.

Again, the customer sold short another 100 shares exactly 30 days later at $65 (to avoid the "wash sale" rule, the position cannot be reestablished until the 31st day). This made the $500 loss to be disallowed.

At this point, the $5 per share loss will be deducted from the sale proceeds of $65, for a new sale proceeds of $60.

Hence, this ensures the taking of the loss until this short position is covered.

both are integral parts of a corporate balance sheet. the cash flow statement, or statement of cash flows, measures the sources of a company's cash and its uses of cash over a specific time period. the income statement measures a company's financial performance, such as revenues, expenses, profits or losses over a specific time period (in fact, it's sometimes called a statement of financial performance).

a cash flow statement shows exactly how much money a company has received and how much it has spent, traditionally over a period of one month. it captures the current operating results and changes on the balance sheet, such as increases or decreases in accounts receivable or accounts payable, and does not include noncash accounting items such as depreciation and amortization. the cash flow generally comes from revenue received as a result of business activity, but it may be augmented by funds available as a result of credit. a cash flow statement is used to determine the short-term viability and liquidity of a company, specifically how well it is positioned to pay its bills and vendors.

statement of owner's equity;