ch23HWSolutions - CHAPTER 23 Statement of Cash Flows...

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CHAPTER 23 Statement of Cash Flows SOLUTIONS TO EXERCISES EXERCISE 23-1 (a) Operating—add to net income. (b) Financing activity. (c) Investing activity. (d) Operating—add to net income. (e) Significant noncash investing and financing activity. (f) Financing activity. (g) Operating—add to net income. (h) Financing activity. (i) Significant noncash investing and financing activity. (j) Financing activity. (k) Operating—deduct from net income. (l) Investing activity. EXERCISE 23-11 FAIRCHILD COMPANY Statement of Cash Flows For the Year Ended December 31, 2010 (Indirect Method) Cash flows from operating activities Net income. ...................................................................... $ 810 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation expense ($1,200 – $1,170). .............. $ 30 Gain on sale of investments. ................................. (80) Decrease in inventory. ........................................... 300 Increase in accounts payable. ............................... 400 Increase in receivables. ......................................... (450) Decrease in accrued liabilities. ............................. (50 ) 150 Net cash provided by operating activities. .................. 960 Cash flows from investing activities Sale of held-to-maturity investments [($1,470 – $1,300) + $80]. ............................................ 250 Purchase of plant assets [($1,900 – $1,700) – $70]. .... (130 ) Net cash provided by investing activities. ................... 120
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Cash flows from financing activities Issuance of capital stock [($1,900 – $1,700) – $70]. ..... 130
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This note was uploaded on 04/14/2010 for the course TOBIN 630 taught by Professor Alan during the Fall '10 term at Adams State University.

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ch23HWSolutions - CHAPTER 23 Statement of Cash Flows...

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