Kieso+13th+ed+sol+ch+23

Kieso+13th+ed+sol+ch+23 - EXERCISE 23-11 (3035 minutes)...

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EXERCISE 23-11 (30–35 minutes) 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 Cash flows from financing activities Issuance of capital stock [($1,900 – $1,700) – $70]. ..... 130 Retirement of bonds payable. ......................................... (250)
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Kieso+13th+ed+sol+ch+23 - EXERCISE 23-11 (3035 minutes)...

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