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FAIRCHILD COMPANY Statement of Cash Flows For the Year Ended December 31, 2010 (Indirect Method) Cash flows from operating activities $ Adjustments

E23-11 (SCF-Indirect Method)

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


FAIRCHILD COMPANY
Comparative Balance Sheet
as of December 31 2010 and 2009

2010 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 1,470
$7,150 $6,300

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 1,900
$7,150 $6,300
FAIRCHILD COMPANY
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.

Instructions:
Complete the statement of cash flows using the indirect method. (List amounts from largest positive to smallest positive followed by most negative to least negative, e.g. 15, 14, 10, -17, -5, -1.)

FAIRCHILD COMPANY Statement of Cash Flows For the Year Ended December 31, 2010 (Indirect Method) Cash flows from operating activities $ Adjustments to reconcile net income to net cash provide by operating activities $                         Net cash by operating activities Cash flows from investing activities                     Net cash by investing activities Cash flows from financing activities   Net cash by financing activities   Net increase in cash Cash, January 1, 2010   Cash, December 31, 2010 $   Noncash investing and financing activities $  
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