View the step-by-step solution to:

Condensed financial data of Fairchild Company for 2010 and 2009 are presented below.

Condensed financial data of Fairchild Company for 2010 and 2009 are presented below.

Comparative Balance Sheet
as of December 31 2010 and 2009


Cash $1,800 $1,100
Receivables 1,750 1,300
Inventory 1,600 1,900
Plant assets 1,900 1,700
Accumulated depreciation (1,200) (1,170)
Long-term investments (Held-to-maturity) 1,300


Accounts payable $1,200 $ 800
Accrued liabilities 200 250
Bonds payable 1,400 1,650
Capital stock 1,900 1,700
Retained earnings 2,450


Income Statement
For the year ended December 31, 2010

Sales $6,900
Cost of goods sold 4,700

Gross margin 2,200
Selling and administrative expense 930

Income from operations 1,270
Other revenues and gains
Gain on sales of investments 80

Income before tax 1,350
Income tax expense 540

Net income $810

Additional information:
During the year, $70 of common stock was issued in exchange for plant assets. No plant assets were sold in 2010. Cash dividends were $260.


Complete the statement of cash flows using the indirect method.
Sign up to view the entire interaction

Top Answer

Dear Student Please find... View the full answer


Cash Flow Statement
Operating Activities
Net Income
Add: Depreciation
Change in operating assets/liabilities
Accounts payable
Accrued liabilities
Cash from operating...

Sign up to view the full answer

Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.


Educational Resources
  • -

    Study Documents

    Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

    Browse Documents
  • -

    Question & Answers

    Get one-on-one homework help from our expert tutors—available online 24/7. Ask your own questions or browse existing Q&A threads. Satisfaction guaranteed!

    Ask a Question
Ask a homework question - tutors are online